x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 |
South Carolina | 57-0425114 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
108 Frederick Street |
Greenville, South Carolina 29607 |
(Address of principal executive offices) |
(Zip Code) |
(864) 298-9800 |
(registrant's telephone number, including area code) |
Large Accelerated filer o | Accelerated filer x | ||
Non-accelerated filer o | Smaller reporting company o | ||
Emerging growth company o |
Item No. | Contents | Page |
GLOSSARY OF DEFINED TERMS | ||
PART I - FINANCIAL INFORMATION | ||
1. | Consolidated Financial Statements (unaudited): | |
Consolidated Balance Sheets as of December 31, 2018 and March 31, 2018 | ||
Consolidated Statements of Operations for the three and nine months ended December 31, 2018 and December 31, 2017 | ||
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended December 31, 2018 and December 31, 2017 | ||
Consolidated Statements of Shareholders' Equity for the three and nine months ended December 31, 2018 and December 31, 2017 | ||
Consolidated Statements of Cash Flows for the nine months ended December 31, 2018 and December 31, 2017 | ||
Notes to Consolidated Financial Statements | ||
2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
3. | Quantitative and Qualitative Disclosures about Market Risk | |
4. | Controls and Procedures | |
PART II - OTHER INFORMATION | ||
1. | Legal Proceedings | |
1A. | Risk Factors | |
2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
3. | Defaults Upon Senior Securities | |
4. | Mine Safety Disclosures | |
5. | Other Information | |
6. | Exhibits | |
EXHIBIT INDEX | ||
SIGNATURES |
Term | Definition |
ASU | Accounting Standards Update |
CEO | Chief Executive Officer |
CFO | Chief Financial Officer |
CFPB | U.S. Consumer Financial Protection Bureau |
Compensation Committee | Compensation and Stock Option Committee |
DOJ | U.S. Department of Justice |
Exchange Act | Securities Exchange Act of 1934, as amended |
FASB | Financial Accounting Standards Board |
FCPA | U.S. Foreign Corrupt Practices Act of 1977, as amended |
G&A | General and administrative |
GAAP | U.S. generally accepted accounting principles |
IRS | U.S. Internal Revenue Service |
LIBOR | London Interbank Offered Rate |
Option Measurement Period | The 6.5 year performance period beginning on September 30, 2018 and ending on March 31, 2025 over which the Performance Options are eligible to vest, following certification by the Compensation Committee of achievement |
Purchasers | Jointly, Astro Wealth S.A. de C.V. and Astro Assets S.A. de C.V. |
Performance Share Measurement Period | The 6.5 year performance period beginning on September 30, 2018 and ending on March 31, 2025 over which the Performance Shares are eligible to vest, following certification by the Compensation Committee of achievement |
Performance Options | Performance-based stock options |
Performance Shares | Service- and performance-based restricted stock awards |
Restricted Stock | Service-based restricted stock awards |
SEC | U.S. Securities and Exchange Commission |
Sellers | Collectively, World Acceptance Corporation, WFC Services Inc., and WAC Mexico Holdings LLC |
Service Options | Service-based stock options |
SWAC | Servicios World Acceptance Corporation de México, S. de R.L. de C.V, a former subsidiary of World Acceptance Corporation |
TCJA | Tax Cuts and Jobs Act |
Transition Tax | Tax amount associated with a one-time repatriation tax on deferred foreign income |
WAC de Mexico | WAC de México, S.A. de C.V., SOFOM, E.N.R., a former subsidiary of World Acceptance Corporation |
December 31, 2018 | March 31, 2018 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 11,131,795 | $ | 12,473,833 | |||
Gross loans receivable | 1,258,907,905 | 1,004,233,159 | |||||
Less: | |||||||
Unearned interest, insurance and fees | (338,132,479 | ) | (258,991,492 | ) | |||
Allowance for loan losses | (91,305,834 | ) | (66,088,139 | ) | |||
Loans receivable, net | 829,469,592 | 679,153,528 | |||||
Property and equipment, net | 24,436,278 | 22,785,951 | |||||
Deferred income taxes, net | 23,781,795 | 20,175,148 | |||||
Other assets, net | 16,974,557 | 13,244,416 | |||||
Goodwill | 7,034,463 | 7,034,463 | |||||
Intangible assets, net | 14,684,675 | 6,644,301 | |||||
Assets of discontinued operations (Note 2) | — | 79,475,397 | |||||
Total assets | $ | 927,513,155 | $ | 840,987,037 | |||
LIABILITIES & SHAREHOLDERS' EQUITY | |||||||
Liabilities: | |||||||
Senior notes payable | $ | 308,040,000 | $ | 244,900,000 | |||
Income taxes payable | 10,800,106 | 14,097,419 | |||||
Accounts payable and accrued expenses | 34,604,163 | 33,503,335 | |||||
Liabilities of discontinued operations (Note 2) | — | 7,378,431 | |||||
Total liabilities | 353,444,269 | 299,879,185 | |||||
Commitments and contingencies (Note 11) | — | — | |||||
Shareholders' equity: | |||||||
Preferred stock, no par value Authorized 5,000,000, no shares issued or outstanding | — | — | |||||
Common stock, no par value Authorized 95,000,000 shares; issued and outstanding 9,839,348 and 9,119,443 shares at December 31, 2018 and March 31, 2018, respectively | — | — | |||||
Additional paid-in capital | 187,258,977 | 175,887,227 | |||||
Retained earnings | 386,809,909 | 391,275,705 | |||||
Accumulated other comprehensive loss | — | (26,055,080 | ) | ||||
Total shareholders' equity | 574,068,886 | 541,107,852 | |||||
Total liabilities and shareholders' equity | $ | 927,513,155 | $ | 840,987,037 |
Three months ended December 31, | Nine months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Continuing operations | |||||||||||||||
Revenues: | |||||||||||||||
Interest and fee income | $ | 122,998,784 | $ | 112,032,713 | $ | 344,933,259 | $ | 321,717,884 | |||||||
Insurance income, net and other income | 14,640,547 | 13,669,926 | 42,611,820 | 39,552,172 | |||||||||||
Total revenues | 137,639,331 | 125,702,639 | 387,545,079 | 361,270,056 | |||||||||||
Expenses: | |||||||||||||||
Provision for loan losses | 48,943,886 | 40,455,513 | 119,893,201 | 100,989,538 | |||||||||||
General and administrative expenses: | |||||||||||||||
Personnel | 47,106,172 | 36,465,905 | 128,370,062 | 115,708,658 | |||||||||||
Occupancy and equipment | 10,363,659 | 9,793,672 | 30,781,521 | 29,036,158 | |||||||||||
Advertising | 8,930,182 | 7,922,621 | 18,896,777 | 17,601,531 | |||||||||||
Amortization of intangible assets | 372,270 | 271,013 | 911,218 | 732,282 | |||||||||||
Other | 10,191,888 | 10,396,491 | 30,717,796 | 30,746,671 | |||||||||||
Total general and administrative expenses | 76,964,171 | 64,849,702 | 209,677,374 | 193,825,300 | |||||||||||
Interest expense | 4,637,154 | 5,000,504 | 13,020,154 | 14,037,950 | |||||||||||
Total expenses | 130,545,211 | 110,305,719 | 342,590,729 | 308,852,788 | |||||||||||
Income from continuing operations before income taxes | 7,094,120 | 15,396,920 | 44,954,350 | 52,417,268 | |||||||||||
Income taxes | 833,958 | 15,203,517 | 8,997,456 | 28,979,799 | |||||||||||
Income from continuing operations | 6,260,162 | 193,403 | 35,956,894 | 23,437,469 | |||||||||||
Discontinued operations (Note 2) | |||||||||||||||
Income (loss) from discontinued operations before disposal of discontinued operations and income taxes | — | (104,947 | ) | 2,341,825 | 110,343 | ||||||||||
Gain (loss) on disposal of discontinued operations | — | — | (38,377,623 | ) | — | ||||||||||
Income taxes (benefit) | — | (1,591,761 | ) | 626,583 | (999,436 | ) | |||||||||
Income (loss) from discontinued operations | — | 1,486,814 | (36,662,381 | ) | 1,109,779 | ||||||||||
Net income (loss) | $ | 6,260,162 | $ | 1,680,217 | $ | (705,487 | ) | $ | 24,547,248 | ||||||
Net income per common share from continuing operations: | |||||||||||||||
Basic | $ | 0.69 | $ | 0.02 | $ | 3.96 | $ | 2.68 | |||||||
Diluted | $ | 0.67 | $ | 0.02 | $ | 3.88 | $ | 2.64 | |||||||
Net income (loss) per common share from discontinued operations: |
Basic | $ | — | $ | 0.17 | $ | (4.04 | ) | $ | 0.13 | ||||||
Diluted | $ | — | $ | 0.17 | $ | (3.95 | ) | $ | 0.12 | ||||||
Net income (loss) per common share: | |||||||||||||||
Basic | $ | 0.69 | $ | 0.19 | $ | (0.08 | ) | $ | 2.81 | ||||||
Diluted | $ | 0.67 | $ | 0.19 | $ | (0.08 | ) | $ | 2.76 | ||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 9,108,516 | 8,787,835 | 9,078,576 | 8,729,710 | |||||||||||
Diluted | 9,278,834 | 8,937,960 | 9,275,068 | 8,886,763 |
Three months ended December 31, | Nine months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | 6,260,162 | $ | 1,680,217 | $ | (705,487 | ) | $ | 24,547,248 | ||||||
Foreign currency translation adjustments | — | (4,940,844 | ) | (5,235,838 | ) | (3,282,203 | ) | ||||||||
Reclassification of cumulative foreign currency translation adjustments due to sale of Mexico business | — | — | 31,290,918 | — | |||||||||||
Comprehensive income (loss) | $ | 6,260,162 | $ | (3,260,627 | ) | $ | 25,349,593 | $ | 21,265,045 |
Three months ended December 31, 2018 | |||||||||||||||
Common Stock | |||||||||||||||
Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss, net | Total Shareholders' Equity | |||||||||||
Balances at September 30, 2018 | 9,153,145 | $ | 180,680,619 | 384,310,056 | — | 564,990,675 | |||||||||
Proceeds from exercise of stock options | 20,180 | 1,000,193 | — | — | 1,000,193 | ||||||||||
Common stock repurchases | (38,822 | ) | — | (3,760,309 | ) | — | (3,760,309 | ) | |||||||
Restricted common stock expense under stock option plan, net of cancellations ($1,348,952) | 704,845 | 4,216,816 | — | — | 4,216,816 | ||||||||||
Stock option expense | — | 1,361,349 | — | — | 1,361,349 | ||||||||||
Net income | — | — | 6,260,162 | — | 6,260,162 | ||||||||||
Balances at December 31, 2018 | 9,839,348 | $ | 187,258,977 | 386,809,909 | — | 574,068,886 |
Three months ended December 31, 2017 | |||||||||||||||
Common Stock | |||||||||||||||
Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss, net | Total Shareholders' Equity | |||||||||||
Balances at September 30, 2017 | 8,840,040 | $ | 155,823,825 | 360,452,718 | (26,124,234 | ) | 490,152,309 | ||||||||
Proceeds from exercise of stock options | 39,891 | 1,971,294 | — | — | 1,971,294 | ||||||||||
Common stock repurchases | — | — | — | — | — | ||||||||||
Restricted common stock expense under stock option plan, net of cancellations ($957,699) | (11,535 | ) | (634,498 | ) | — | — | (634,498 | ) | |||||||
Stock option expense | — | 712,286 | — | — | 712,286 | ||||||||||
Other comprehensive loss | — | — | — | (4,940,844 | ) | (4,940,844 | ) | ||||||||
Net income | — | — | 1,680,217 | — | 1,680,217 | ||||||||||
Balances at December 31, 2017 | 8,868,396 | $ | 157,872,907 | 362,132,935 | (31,065,078 | ) | 488,940,764 |
Nine months ended December 31, 2018 | |||||||||||||||
Common Stock | |||||||||||||||
Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss, net | Total Shareholders' Equity | |||||||||||
Balances at March 31, 2018 | 9,119,443 | $ | 175,887,227 | 391,275,705 | (26,055,080 | ) | 541,107,852 | ||||||||
Proceeds from exercise of stock options | 45,456 | 2,815,599 | — | — | 2,815,599 | ||||||||||
Common stock repurchases | (38,822 | ) | — | (3,760,309 | ) | — | (3,760,309 | ) | |||||||
Restricted common stock expense under stock option plan, net of cancellations ($1,348,952) | 713,271 | 6,131,165 | — | — | 6,131,165 | ||||||||||
Stock option expense | — | 2,424,986 | — | — | 2,424,986 | ||||||||||
Other comprehensive loss | — | — | — | (5,235,838 | ) | (5,235,838 | ) | ||||||||
Reclassification of cumulative foreign currency translation adjustments due to sale of Mexico business | — | — | — | 31,290,918 | 31,290,918 | ||||||||||
Net loss | — | — | (705,487 | ) | — | (705,487 | ) | ||||||||
Balances at December 31, 2018 | 9,839,348 | $ | 187,258,977 | 386,809,909 | — | 574,068,886 |
Nine months ended December 31, 2017 | |||||||||||||||
Common Stock | |||||||||||||||
Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss, net | Total Shareholders' Equity | |||||||||||
Balances at March 31, 2017 | 8,782,949 | $ | 144,241,105 | 344,605,347 | (27,782,875 | ) | 461,063,577 | ||||||||
Proceeds from exercise of stock options | 155,710 | 8,736,340 | — | — | 8,736,340 | ||||||||||
Common stock repurchases | (58,728 | ) | — | (4,614,331 | ) | — | (4,614,331 | ) | |||||||
Restricted common stock expense under stock option plan, net of cancellations ($957,699) | (11,535 | ) | 655,620 | — | — | 655,620 | |||||||||
Stock option expense | — | 1,834,513 | — | — | 1,834,513 | ||||||||||
ASU 2016-09 adoption | — | 2,405,329 | (2,405,329 | ) | — | — | |||||||||
Other comprehensive loss | — | — | — | (3,282,203 | ) | (3,282,203 | ) | ||||||||
Net income | — | — | 24,547,248 | — | 24,547,248 | ||||||||||
Balances at December 31, 2017 | 8,868,396 | $ | 157,872,907 | 362,132,935 | (31,065,078 | ) | 488,940,764 |
Nine months ended December 31, | |||||||
2018 | 2017 | ||||||
Cash flow from operating activities: | |||||||
Net income (loss) | $ | (705,487 | ) | $ | 24,547,248 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Loss on sale of discontinued operations | 38,377,623 | — | |||||
Amortization of intangible assets | 911,218 | 732,282 | |||||
Amortization of debt issuance costs | 456,568 | 656,806 | |||||
Provision for loan losses | 119,893,201 | 113,570,935 | |||||
Depreciation | 5,015,745 | 5,471,446 | |||||
Loss on sale of property and equipment | 50,139 | 223,764 | |||||
Deferred income tax benefit (expense) | (3,606,647 | ) | 2,241,233 | ||||
Compensation related to stock option and restricted stock plans, net of taxes and adjustments | 9,905,103 | 3,447,832 | |||||
Change in accounts: | |||||||
Other assets, net | (3,946,708 | ) | (1,573,172 | ) | |||
Income taxes payable | (3,297,313 | ) | (7,165,088 | ) | |||
Accounts payable and accrued expenses | 1,100,829 | 3,420,224 | |||||
Net cash provided by operating activities | 164,154,271 | 145,573,510 | |||||
Cash flows from investing activities: | |||||||
Increase in loans receivable, net | (239,976,349 | ) | (202,138,017 | ) | |||
Net assets acquired from branch acquisitions, primarily loans | (30,232,918 | ) | (8,829,565 | ) | |||
Increase in intangible assets from acquisitions | (8,951,592 | ) | (1,877,329 | ) | |||
Purchases of property and equipment | (6,973,951 | ) | (6,809,295 | ) | |||
Proceeds from sale of property and equipment | 257,740 | 193,535 | |||||
Proceeds from sale of Mexico business | 37,494,505 | — | |||||
Net cash used in investing activities | (248,382,565 | ) | (219,460,671 | ) | |||
Cash flow from financing activities: | |||||||
Borrowings from senior notes payable | 246,640,000 | 236,763,800 | |||||
Payments on senior notes payable | (183,500,000 | ) | (155,050,000 | ) | |||
Debt issuance costs associated with senior notes payable | (240,000 | ) | (420,000 | ) | |||
Proceeds from exercise of stock options | 2,815,599 | 8,736,340 | |||||
Payments for taxes related to net share settlement of equity awards | (1,348,952 | ) | (957,699 | ) | |||
Repurchase of common stock | (3,760,309 | ) | (4,614,331 | ) | |||
Net cash provided by financing activities | 60,606,338 | 84,458,110 | |||||
Effects of foreign currency fluctuations on cash and cash equivalents | 2,667,447 | (799,995 | ) | ||||
Net change in cash and cash equivalents | (20,954,509 | ) | 9,770,954 | ||||
Cash and cash equivalents at beginning of period from continuing operations | 12,473,833 | 11,581,936 | |||||
Cash and cash equivalents at beginning of period from discontinued operations | 19,612,471 | 3,618,474 | |||||
Cash and cash equivalents at end of period | $ | 11,131,795 | $ | 24,971,364 | |||
Cash and cash equivalents at end of period from continuing operations | 11,131,795 | 12,440,318 | |||||
Cash and cash equivalents at end of period from discontinued operations | — | 12,531,046 | |||||
Supplemental Disclosures: | |||||||
Interest paid during the period | $ | 11,865,748 | $ | 12,609,023 | |||
Income taxes paid during the period | $ | 16,976,977 | $ | 35,181,118 |
March 31, 2018 | ||||
Assets of discontinued operations: | ||||
Cash and cash equivalents | $ | 19,612,471 | ||
Loans receivable, net | 46,027,200 | |||
Property and equipment, net | 2,805,467 | |||
Deferred income taxes, net | 10,064,489 | |||
Other assets, net | 965,770 | |||
Total assets of discontinued operations | $ | 79,475,397 | ||
Liabilities of discontinued operations: | ||||
Income taxes payable | 437,551 | |||
Accounts payable and accrued expenses | 6,940,880 | |||
Total liabilities of discontinued operations | $ | 7,378,431 |
Three months ended December 31, | Nine months ended December 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Revenues | — | 11,231,128 | 9,693,367 | 35,578,665 | |||||||
Provision for loan losses | — | 3,299,392 | 1,809,059 | 12,581,397 | |||||||
General and administrative expenses | — | 8,036,683 | 5,542,483 | 22,886,925 | |||||||
Income from discontinued operations before disposal of discontinued operations and income taxes | — | (104,947 | ) | 2,341,825 | 110,343 | ||||||
Gain (loss) on disposal of discontinued operations | — | — | (38,377,623 | ) | — | ||||||
Income taxes (benefit) | — | (1,591,761 | ) | 626,583 | (999,436 | ) | |||||
Income (loss) from discontinued operations | — | 1,486,814 | (36,662,381 | ) | 1,109,779 |
Nine months ended December 31, | ||||||||
2018 | 2017 | |||||||
Cash provided by operating activities: | $ | 3,553,854 | $ | 15,224,142 | ||||
Cash provided by (used in) investing activities: | 1,138,084 | (5,511,573 | ) | |||||
Cash provided by (used in) financing activities: | $ | (17,126,000 | ) | $ | — |
1. | The fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified. |
2. | The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. |
3. | The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. |
• | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. |
• | Level 2 – Inputs other than quoted prices that are observable for assets and liabilities, either directly or indirectly. These inputs include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in market that are less active. |
• | Level 3 – Unobservable inputs for assets or liabilities reflecting the reporting entity’s own assumptions. |
December 31, 2018 | March 31, 2018 | ||||||||||||||
Input Level | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | |||||||||||
ASSETS | |||||||||||||||
Cash and cash equivalents | 1 | $ | 11,131,795 | 11,131,795 | $ | 12,473,833 | 12,473,833 | ||||||||
Loans receivable, net | 3 | 829,469,592 | 829,469,592 | 679,153,528 | 679,153,528 | ||||||||||
LIABILITIES | |||||||||||||||
Senior notes payable | 3 | 308,040,000 | 308,040,000 | 244,900,000 | 244,900,000 |
December 31, 2018 | March 31, 2018 | December 31, 2017 | |||||||||
Small loans | $ | 857,945,959 | $ | 670,189,211 | $ | 774,416,024 | |||||
Large loans | 400,961,429 | 334,041,731 | 352,999,300 | ||||||||
Sales finance loans(1) | 517 | 2,217 | 4,057 | ||||||||
Total gross loans | $ | 1,258,907,905 | $ | 1,004,233,159 | $ | 1,127,419,381 |
(1) | The Company decided to wind down the World Class Buying Club program during the third quarter of fiscal 2015. As of March 31, 2015, the Company is no longer financing the purchase of products through the program; however, the Company will continue to service the outstanding retail installment sales contracts. |
Three months ended December 31, | Nine months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Balance at beginning of period | $ | 79,310,375 | 71,172,677 | $ | 66,088,139 | $ | 60,644,365 | ||||||||
Provision for loan losses | 48,943,886 | 40,455,513 | 119,893,201 | 100,989,538 | |||||||||||
Loan losses | (40,001,055 | ) | (33,550,642 | ) | (105,014,401 | ) | (91,047,277 | ) | |||||||
Recoveries | 3,052,628 | 3,242,943 | 10,338,895 | 10,733,865 | |||||||||||
Balance at end of period | $ | 91,305,834 | $ | 81,320,491 | $ | 91,305,834 | $ | 81,320,491 |
December 31, 2018 | Loans individually evaluated for impairment (impaired loans) | Loans collectively evaluated for impairment | Total | ||||||
Gross loans in bankruptcy, excluding contractually delinquent | $ | 4,714,475 | — | 4,714,475 | |||||
Gross loans contractually delinquent | 62,834,979 | — | 62,834,979 | ||||||
Loans not contractually delinquent and not in bankruptcy | — | 1,191,358,451 | 1,191,358,451 | ||||||
Gross loan balance | 67,549,454 | 1,191,358,451 | 1,258,907,905 | ||||||
Unearned interest and fees | (14,930,704 | ) | (323,201,775 | ) | (338,132,479 | ) | |||
Net loans | 52,618,750 | 868,156,676 | 920,775,426 | ||||||
Allowance for loan losses | (48,104,640 | ) | (43,201,194 | ) | (91,305,834 | ) | |||
Loans, net of allowance for loan losses | $ | 4,514,110 | 824,955,482 | 829,469,592 |
March 31, 2018 | Loans individually evaluated for impairment (impaired loans) | Loans collectively evaluated for impairment | Total | ||||||
Gross loans in bankruptcy, excluding contractually delinquent | $ | 4,627,599 | — | 4,627,599 | |||||
Gross loans contractually delinquent | 50,019,567 | — | 50,019,567 | ||||||
Loans not contractually delinquent and not in bankruptcy | — | 949,585,993 | 949,585,993 | ||||||
Gross loan balance | 54,647,166 | 949,585,993 | 1,004,233,159 | ||||||
Unearned interest and fees | (11,433,666 | ) | (247,557,826 | ) | (258,991,492 | ) | |||
Net loans | 43,213,500 | 702,028,167 | 745,241,667 | ||||||
Allowance for loan losses | (38,782,574 | ) | (27,305,565 | ) | (66,088,139 | ) | |||
Loans, net of allowance for loan losses | $ | 4,430,926 | 674,722,602 | 679,153,528 |
December 31, 2017 | Loans individually evaluated for impairment (impaired loans) | Loans collectively evaluated for impairment | Total | ||||||
Gross loans in bankruptcy, excluding contractually delinquent | $ | 4,507,307 | — | 4,507,307 | |||||
Gross loans contractually delinquent | 57,019,347 | — | 57,019,347 | ||||||
Loans not contractually delinquent and not in bankruptcy | — | 1,065,892,727 | 1,065,892,727 | ||||||
Gross loan balance | 61,526,654 | 1,065,892,727 | 1,127,419,381 | ||||||
Unearned interest and fees | (13,118,190 | ) | (287,078,221 | ) | (300,196,411 | ) | |||
Net loans | 48,408,464 | 778,814,506 | 827,222,970 | ||||||
Allowance for loan losses | (44,092,718 | ) | (37,227,773 | ) | (81,320,491 | ) | |||
Loans, net of allowance for loan losses | $ | 4,315,746 | 741,586,733 | 745,902,479 |
December 31, 2018 | March 31, 2018 | December 31, 2017 | |||||||||
Credit risk | |||||||||||
Consumer loans- non-bankrupt accounts | $ | 1,252,645,902 | $ | 998,299,051 | $ | 1,121,591,353 | |||||
Consumer loans- bankrupt accounts | 6,262,003 | 5,934,108 | 5,828,028 | ||||||||
Total gross loans | $ | 1,258,907,905 | $ | 1,004,233,159 | $ | 1,127,419,381 | |||||
Consumer credit exposure | |||||||||||
Credit risk profile based on payment activity, performing | $ | 1,164,459,600 | $ | 929,400,862 | 1,044,690,133 | ||||||
Contractual non-performing, 61 or more days delinquent (1) | 94,448,305 | 74,832,297 | 82,729,248 | ||||||||
Total gross loans | $ | 1,258,907,905 | $ | 1,004,233,159 | $ | 1,127,419,381 | |||||
Credit risk profile based on customer type | |||||||||||
New borrower | $ | 175,727,060 | $ | 104,762,628 | $ | 126,446,949 | |||||
Former borrower | 144,840,392 | 104,281,551 | 131,195,579 | ||||||||
Refinance | 917,868,854 | 778,115,097 | 850,626,372 | ||||||||
Delinquent refinance | 20,471,599 | 17,073,883 | 19,150,481 | ||||||||
Total gross loans | $ | 1,258,907,905 | $ | 1,004,233,159 | $ | 1,127,419,381 |
(1) | Loans in non-accrual status. |
December 31, 2018 | March 31, 2018 | December 31, 2017 | |||||||
Contractual basis: | |||||||||
30-60 days past due | $ | 49,655,289 | 32,959,151 | 39,955,532 | |||||
61-90 days past due | 31,613,326 | 24,812,730 | 25,709,901 | ||||||
91 days or more past due | 62,834,979 | 50,019,567 | 57,019,347 | ||||||
Total | $ | 144,103,594 | 107,791,448 | 122,684,780 | |||||
Percentage of period-end gross loans receivable | 11.4 | % | 10.7 | % | 10.9 | % |
Three months ended December 31, | Nine months ended December 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Basic: | |||||||||||
Weighted average common shares outstanding (denominator) | 9,108,516 | 8,787,835 | 9,078,576 | 8,729,710 | |||||||
Diluted: | |||||||||||
Weighted average common shares outstanding | 9,108,516 | 8,787,835 | 9,078,576 | 8,729,710 | |||||||
Dilutive potential common shares securities | 170,318 | 150,125 | 196,492 | 157,053 | |||||||
Weighted average diluted shares outstanding (denominator) | 9,278,834 | 8,937,960 | 9,275,068 | 8,886,763 |
Trailing 4-Quarter EPS Targets for September 30, 2018 through March 31, 2025 | Restricted Stock Eligible for Vesting (Percentage of Award) |
$16.35 | 40% |
$20.45 | 60% |
Trailing 4-Quarter EPS Targets for September 30, 2018 through March 31, 2025 | Options Eligible for Vesting (Percentage of Award) |
$25.30 | 100% |
Nine months ended December 31, | |||
2018 | 2017 | ||
Dividend Yield | —% | —% | |
Expected Volatility | 48.95% | 52.97% | |
Average risk-free rate | 3.06% | 1.97% | |
Expected Life | 6.7 years | 5.0 years |
Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||
Options outstanding, beginning of period | 497,728 | $ | 70.69 | |||||||||
Granted during period | 294,630 | 100.79 | ||||||||||
Exercised during period | (45,456 | ) | 61.94 | |||||||||
Forfeited during period | (6,845 | ) | 72.64 | |||||||||
Expired during period | (3,052 | ) | 33.91 | |||||||||
Options outstanding, end of period | 737,005 | $ | 83.38 | 7.0 years | $ | 13,941,136 | ||||||
Options exercisable, end of period | 361,283 | $ | 71.25 | 4.7 years | $ | 11,217,190 |
December 31, 2018 | December 31, 2017 | ||||||
Three months ended | $ | 1,159,858 | $ | 1,334,062 | |||
Nine months ended | $ | 2,251,405 | $ | 4,010,659 |
Shares | Weighted Average Fair Value at Grant Date | |||||
Outstanding at March 31, 2018 | 73,810 | $ | 65.74 | |||
Granted during the period | 725,420 | 100.99 | ||||
Vested during the period | (39,392 | ) | 55.51 | |||
Forfeited during the period | — | — | ||||
Outstanding at December 31, 2018 | 759,838 | $ | 99.93 |
Three months ended December 31, | Nine months ended December 31, | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
Stock-based compensation related to equity classified awards: | ||||||||||||||
Stock-based compensation related to stock options | $ | 1,361,349 | 712,286 | $ | 2,424,986 | $ | 1,834,513 | |||||||
Stock-based compensation related to restricted stock, net of adjustments and exclusive of cancellations | 5,565,768 | 323,201 | 7,480,117 | 1,613,319 | ||||||||||
Total stock-based compensation related to equity classified awards | $ | 6,927,117 | 1,035,487 | $ | 9,905,103 | $ | 3,447,832 |
Nine months ended December 31, | ||||||||
2018 | 2017 | |||||||
Acquisitions: | ||||||||
Number of branches acquired through business combinations | 14 | 3 | ||||||
Number of loan portfolios acquired through asset purchases | 83 | 25 | ||||||
Total acquisitions | 97 | 28 | ||||||
Purchase price | $ | 39,184,508 | $ | 10,706,894 | ||||
Tangible assets: | ||||||||
Loans receivable, net | 30,232,918 | 8,826,565 | ||||||
Property and equipment | — | 3,000 | ||||||
Total tangible assets | 30,232,918 | 8,829,565 | ||||||
Excess of purchase prices over carrying value of net tangible assets | $ | 8,951,590 | $ | 1,877,329 | ||||
Customer lists | 8,456,590 | 770,086 | ||||||
Non-compete agreements | 495,000 | 140,000 | ||||||
Goodwill | — | 967,243 | ||||||
Total intangible assets | $ | 8,951,590 | $ | 1,877,329 |
No. | Acquiree Name | Acquiree State(s) | Date |
1 | Customer Credit Corporation (1 branch) | LA | 8/13/2018 |
2 | Your Credit, Inc. (1 branch) | WI | 8/24/2018 |
3 | Noble Finance Corporation (1 branch) | ID | 9/28/2018 |
4 | Noble Finance Corporation (1 branch) | MO | 10/15/2018 |
5 | Gentry Credit Corporation (1 branch) | UT | 10/26/2018 |
6 | Gentry Finance Corporation (6 branches) | UT | 10/26/2018 |
7 | Noble Finance Corporation (2 branches) | UT | 10/26/2018 |
8 | Noble Finance Corporation (1 branch) | TX | 11/26/2018 |
Three months ended December 31, | Nine months ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Gross loans receivable | $ | 1,258,908 | $ | 1,127,419 | $ | 1,258,908 | $ | 1,127,419 | |||||||
Average gross loans receivable (1) | 1,183,223 | 1,066,785 | 1,105,090 | 1,011,637 | |||||||||||
Net loans receivable (2) | 920,776 | 827,223 | 920,776 | 827,223 | |||||||||||
Average net loans receivable (3) | 867,320 | 784,743 | 812,891 | 747,039 | |||||||||||
Expenses as a percentage of total revenue: | |||||||||||||||
Provision for loan losses | 35.6 | % | 32.2 | % | 30.9 | % | 28.0 | % | |||||||
General and administrative | 55.9 | % | 51.6 | % | 54.1 | % | 53.7 | % | |||||||
Interest expense | 3.4 | % | 4.0 | % | 3.4 | % | 3.9 | % | |||||||
Operating income as a % of total revenue (4) | 8.5 | % | 16.2 | % | 15.0 | % | 18.4 | % | |||||||
Loan volume | 780,896 | 735,372 | 2,100,408 | 1,958,234 | |||||||||||
Net charge-offs as percent of average net loans receivable | 17.0 | % | 15.4 | % | 15.5 | % | 14.3 | % | |||||||
Return on average assets (trailing 12 months) | 7.4 | % | 6.9 | % | 7.4 | % | 6.9 | % | |||||||
Return on average equity (trailing 12 months) | 11.7 | % | 12.2 | % | 11.7 | % | 12.2 | % | |||||||
Branches opened or acquired (merged or closed), net | 15 | 5 | 27 | 5 | |||||||||||
Branches open (at period end) | 1,204 | 1,174 | 1,204 | 1,174 |
(1) | Average gross loans receivable have been determined by averaging month-end gross loans receivable over the indicated period. |
(2) | Net loans receivable is defined as gross loans receivable less unearned interest and deferred fees. |
(3) | Average net loans receivable have been determined by averaging month-end gross loans receivable less unearned interest and deferred fees over the indicated period. |
(4) | Operating income is computed as total revenues less provision for loan losses and general and administrative expenses. |
(a) Total number of shares purchased | (b) Average price paid per share | (c) Total number of shares purchased as part of publicly announced plans or programs | (d) Approximate dollar value of shares that may yet be purchased under the plans or programs | ||||||||||
October 1 through October 31, 2018 | — | $ | — | — | $ | 1,906,179 | |||||||
November 1 through November 30, 2018 | — | — | — | 1,906,179 | |||||||||
December 1 through December 31, 2018 | 38,822 | 96.83 | 38,822 | 73,147,034 | |||||||||
Total for the quarter | 38,822 | $ | 96.83 | 38,822 |
Exhibit Number | Exhibit Description | Filed Herewith | Incorporated by Reference | |||
Form or Registration Number | Exhibit | Filing Date | ||||
2.01 | 8-K | 2.1 | 08-03-18 | |||
3.01 | 10-K | 3.01 | 11-08-18 | |||
10.01 | 8-K | 10.1 | 06-01-18 | |||
10.02+ | 8-K | 10.1 | 10-16-18 | |||
10.03+ | 8-K | 10.2 | 10-16-18 | |||
10.04+ | 8-K | 10.3 | 10-16-18 | |||
10.05+ | 8-K | 10.4 | 10-16-18 | |||
10.06+ | 8-K | 10.5 | 10-16-18 | |||
10.07+ | 8-K | 10.6 | 10-16-18 | |||
10.08+ | 8-K | 10.7 | 10-16-18 | |||
10.09+ | 8-K | 10.8 | 10-16-18 | |||
10.10+ | 8-K | 10.9 | 10-16-18 | |||
10.11+ | 10-K | 10.02 | 11-08-18 | |||
10.12 | 8-K | 10.1 | 12-14-18 | |||
31.01 | * | |||||
31.02 | * | |||||
32.01 | * | |||||
32.02 | * | |||||
101.01 | The following materials from the Company's Quarterly Report for the fiscal quarter ended December 31, 2018, formatted in XBRL: | * | ||||
(i) | Consolidated Balance Sheets as of December 31, 2018 and March 31, 2018; | |||||
(ii) | Consolidated Statements of Operations for the three and nine months ended December 31, 2018 and December 31, 2017; | |||||
(iii) | Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended December 31, 2018 and December 31, 2017; | |||||
(iv) | Consolidated Statements of Shareholders' Equity for the three and nine months ended December 31, 2018 and December 31, 2017; | |||||
(v) | Consolidated Statements of Cash Flows for the nine months ended December 31, 2018 and December 31, 2017; and | |||||
(vi) | Notes to the Consolidated Financial Statements. |
* | Submitted electronically herewith. |
+ | Management Contract or other compensatory plan required to be filed under Item 6 of this report and Item 601 of Regulation S-K of the Securities and Exchange Commission. |
WORLD ACCEPTANCE CORPORATION | |||
By: /s/ R. Chad Prashad | |||
R. Chad Prashad | |||
President and Chief Executive Officer | |||
Signing on behalf of the registrant and as principal executive officer | |||
Date: | February 11, 2019 | ||
By: /s/ John L. Calmes, Jr. | |||
John L. Calmes, Jr. | |||
Executive Vice President and Chief Financial and Strategy Officer | |||
Signing on behalf of the registrant and as principal financial officer | |||
Date: | February 11, 2019 | ||
By: /s/ Scott McIntyre | |||
Scott McIntyre | |||
Senior Vice President of Accounting | |||
Signing on behalf of the registrant and as principal accounting officer | |||
Date: | February 11, 2019 |
1. | I have reviewed this Quarterly Report on Form 10-Q of World Acceptance Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: | February 11, 2019 | /s/ R. Chad Prashad |
R. Chad Prashad | ||
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of World Acceptance Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Dated: | February 11, 2019 | /s/ John L. Calmes, Jr. |
John L. Calmes, Jr. | ||
Executive Vice President and Chief Financial and Strategy Officer |
(1) | the Quarterly Report on Form 10-Q of the Company for the quarter ended December 31, 2018, (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: | February 11, 2019 | /s/ R. Chad Prashad |
R. Chad Prashad | ||
President and Chief Executive Officer |
(1) | the Quarterly Report on Form 10-Q of the Company for the quarter ended December 31, 2018, (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: | February 11, 2019 | /s/ John L. Calmes, Jr. |
John L. Calmes, Jr. | ||
Executive Vice President and Chief Financial and Strategy Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Jan. 31, 2019 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | WORLD ACCEPTANCE CORP | |
Entity Central Index Key | 0000108385 | |
Current Fiscal Year End Date | --03-31 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,622,849 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares |
Dec. 31, 2018 |
Mar. 31, 2018 |
---|---|---|
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 95,000,000 | 95,000,000 |
Common stock, shares issued (in shares) | 9,839,348 | 9,119,443 |
Common stock, shares outstanding (in shares) | 9,839,348 | 9,119,443 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Net income | $ 6,260,162 | $ 1,680,217 | $ (705,487) | $ 24,547,248 |
Foreign currency translation adjustments | 0 | (4,940,844) | (5,235,838) | (3,282,203) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | 0 | 31,290,918 | 0 |
Comprehensive income | $ 6,260,162 | $ (3,260,627) | $ 25,349,593 | $ 21,265,045 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Mar. 31, 2018 |
|
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||
Proceeds from exercise of stock options (in shares) | 20,180 | 39,891 | 45,456 | |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $ 0 | $ 0 | ||
Proceeds from exercise of stock options, tax benefits | $ 0 | $ 0 | ||
Adjustments Related to Tax Withholding for Share-based Compensation | $ 1,348,952 | $ 957,699 | $ 1,348,952 | $ 957,699 |
Segments Statement - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Mar. 31, 2018 |
|
Segment Reporting Information [Line Items] | |||||
Revenues | $ 137,639,331 | $ 125,702,639 | $ 387,545,079 | $ 361,270,056 | |
Provision for Loan and Lease Losses | 48,943,886 | 40,455,513 | 119,893,201 | 100,989,538 | |
General and Administrative Expense | 76,964,171 | 64,849,702 | 209,677,374 | 193,825,300 | |
Interest Expense | 4,637,154 | 5,000,504 | 13,020,154 | 14,037,950 | |
Income Tax Expense (Benefit) | 833,958 | 15,203,517 | 8,997,456 | 28,979,799 | |
Net Income (Loss) Attributable to Parent | 6,260,162 | $ 1,680,217 | (705,487) | $ 24,547,248 | |
Assets | $ 927,513,155 | $ 927,513,155 | $ 840,987,037 |
BASIS OF PRESENTATION |
9 Months Ended |
---|---|
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The consolidated financial statements of the Company at December 31, 2018, and for the three and nine months then ended were prepared in accordance with the instructions for Form 10-Q and are unaudited; however, in the opinion of management all adjustments (consisting only of items of a normal, recurring nature) necessary for a fair presentation of the financial position at December 31, 2018, and the results of operations and cash flows for the periods ended December 31, 2018 and 2017, have been included. The results for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. The consolidated financial statements do not include all disclosures required by GAAP and should be read in conjunction with the Company’s audited consolidated financial statements and related notes for the fiscal year ended March 31, 2018, included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2018, as filed with the SEC. |
SUMMARY OF SIGNIFICANT POLICIES |
9 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
SUMMARY OF SIGNIFICANT POLICIES | SUMMARY OF SIGNIFICANT POLICIES Nature of Operations The Company is a small-loan consumer finance company headquartered in Greenville, South Carolina that offers short-term small loans, medium-term larger loans, related credit insurance products and ancillary products and services to individuals who have limited access to other sources of consumer credit. The Company offers income tax return preparation services to its loan customers and other individuals. Seasonality The Company's loan volume and corresponding loans receivable follow seasonal trends. The Company's highest loan demand generally occurs from October through December, its third fiscal quarter. Loan demand is generally lowest and loan repayment highest from January to March, its fourth fiscal quarter. Loan volume and average balances remain relatively level during the remainder of the year. Consequently, the Company experiences significant seasonal fluctuations in its operating results and cash needs. Operating results for the Company's third fiscal quarter are generally lower than in other quarters and operating results for its fourth fiscal quarter are generally higher than in other quarters. Recently Adopted Accounting Standards Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. According to ASU 2017-09 an entity should account for the effects of a modification unless all the following are met:
The amendments in this Update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company adopted ASU 2017-09 on its effective date, April 1, 2018. Management has reviewed the provisions of ASU 2017-09 and has determined that there is no financial statement impact during the period since this is a clarification to current guidance. The Company will apply the clarified guidance on any future change to terms and conditions of share-based payment awards. Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing. The amendments clarify the following two aspects of Topic 606: (a) identifying performance obligations; and (b) the licensing implementation guidance. The amendments do not change the core principle of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in Topic 606. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. The Company adopted ASU 2016-10 on its effective date, April 1, 2018. Management has concluded that the new standard did not have a material impact on the Company's consolidated financial statements. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Public entities should apply the amendments for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. The Company adopted ASU 2016-01 on its effective date, April 1, 2018. The Company's current disclosures around financial instruments reflect the instruments' estimated fair market value or exit price. Based on this, management has determined that the provisions of ASU 2016-01 had no financial statement impact during the period of adoption. Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, which supersedes the revenue recognition requirements Topic 605 (Revenue Recognition), and most industry-specific guidance. ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09, as amended by ASU 2015-14, ASU 2016-20, ASU 2017-13, is effective for fiscal years, and interim periods, beginning after December 15, 2017. The Company adopted this new guidance on its effective date, April 1, 2018, using the modified retrospective method where prior periods are not restated. Management has evaluated revenue from contracts with customers and has concluded that the new standard did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 from the goodwill impairment test. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. The amendments in this update are effective for public entities who are SEC filers for fiscal years beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact the adoption of this guidance will have on our consolidated financial statements. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendment seeks to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public business entities the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are currently evaluating the impact the adoption of this guidance will have on our consolidated financial statements. The adoption of this ASU could have a material impact on the provision for loan losses in the consolidated statements of operations and allowance for loan losses in the consolidated balance sheets. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The ASU 2016-02, as amended by ASU 2018-01, and ASU 2018-10, will require lessees to recognize assets and liabilities on leases with terms greater than 12 months and to disclose information related to the amount, timing and uncertainty of cash flows arising from leases, including various qualitative and quantitative requirements. The amendments of this ASU become effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. We are currently evaluating the impact the adoption of this guidance will have on our consolidated financial statements. We expect the standard to have an impact on our assets and liabilities for the addition of right-of-use assets and lease liabilities, but we do not expect it to have a material impact to our results of operations or liquidity. In July of 2018, the FASB issued ASU 2018-11, Leases: Targeted Improvements, which allows for a transition option to adopt the standard on the date of initial application as opposed to the modified retrospective approach. We plan to make the election to adopt the standard using this transition relief. We reviewed all other newly issued accounting pronouncements and concluded that they are either not applicable to our business or are not expected to have a material effect on the consolidated financial statements as a result of future adoption. |
FAIR VALUE |
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FAIR VALUE | FAIR VALUE Fair Value Disclosures The Company may carry certain financial instruments and derivative assets and liabilities measured at fair value on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Company determines the fair values of its financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Financial assets and liabilities measured at fair value are grouped in three levels. The levels prioritize the inputs used to measure the fair value of the assets or liabilities. These levels are:
The Company’s financial instruments measured at fair value on a recurring basis for the periods reported consist of the following: cash and cash equivalents, loans receivable, and senior notes payable. Fair value approximates carrying value for all of these instruments. Loans receivable are originated at prevailing market rates and have an average life of approximately eight months. Given the short-term nature of these loans, they are continually repriced at current market rates. The Company’s revolving credit facility has a variable rate based on a margin over LIBOR and reprices with any changes in LIBOR. The Company also considers its creditworthiness in its determination of fair value. The carrying amounts and estimated fair values of amounts the Company measures at fair value on a recurring basis are summarized below.
There were no significant assets or liabilities measured at fair value on a non-recurring basis as of December 31, 2018 or March 31, 2018. |
ALLOWANCE FOR LOAN LOSSES |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES The following is a summary of gross loans receivable as of:
The following is a summary of the changes in the allowance for loan losses for the periods indicated:
The following is a summary of loans individually and collectively evaluated for impairment for the period indicated:
The average net balance of impaired loans was $46.3 million and $42.1 million, respectively, for the nine month periods ended December 31, 2018, and 2017. It is not practical to compute the amount of interest earned on impaired loans. The following is an assessment of the credit quality for the period indicated:
The following is a summary of the past due receivables as of:
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AVERAGE SHARE INFORMATION |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AVERAGE SHARE INFORMATION | AVERAGE SHARE INFORMATION The following is a summary of the basic and diluted average common shares outstanding:
Options to purchase 701,484 and 338,489 shares of common stock at various prices were outstanding during the three months ended December 31, 2018 and 2017 respectively, but were not included in the computation of diluted EPS because the option exercise price was anti-dilutive. Options to purchase 552,337 and 392,609 shares of common stock at various prices were outstanding during the nine months ended December 31, 2018 and 2017 respectively, but were not included in the computation of diluted EPS because the option exercise price was anti-dilutive. |
STOCK-BASED COMPENSATION |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Incentive Plans The Company has a 2005 Stock Option Plan, a 2008 Stock Option Plan, a 2011 Stock Option Plan and a 2017 Stock Incentive Plan for the benefit of certain non-employee directors, officers, and key employees. Under these plans, a total of 4,950,000 shares of common stock have been authorized and reserved for issuance pursuant to grants approved by the Compensation and Stock Option Committee of the Board of Directors. Stock options granted under these plans have a maximum duration of 10 years, may be subject to certain vesting requirements, which are generally three to five years for officers, non-employee directors, and key employees, and are priced at the market value of the Company's common stock on the option's grant date. At December 31, 2018, there were a total of 246,296 shares of common stock available for grant under the plans. Stock-based compensation is recognized as provided under FASB ASC Topic 718-10 and FASB ASC Topic 505-50. FASB ASC Topic 718-10 requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense over the requisite service period (generally the vesting period) in the consolidated financial statements based on their grant date fair values. The Company has applied the Black-Scholes valuation model in determining the grant date fair value of the stock option awards. Compensation expense is recognized only for those options expected to vest. Long-term Incentive Program and Non-Employee Director Awards On October 15, 2018, the Compensation Committee and Board approved and adopted a new long-term incentive program that seeks to motivate and reward certain employees and to align management’s interest with shareholders' by focusing executives on the achievement of long-term results. The program is comprised of four components: Service Options, Performance Options, Restricted Stock, and Performance Shares. Pursuant to this program, the Compensation Committee approved certain grants of Service Options, Performance Options, Restricted Stock and Performance Shares under the World Acceptance Corporation 2011 Stock Option Plan and the World Acceptance Corporation 2017 Stock Incentive Plan to certain employee directors, vice presidents of operations, vice presidents, senior vice presidents, and executive officers. Separately, the Compensation Committee approved certain grants of Service Options and Restricted Stock to certain of the Company's non-employee directors. Under the long-term incentive program, up to 100% of the shares of restricted stock subject to the Performance Shares shall vest, if at all, based on the achievement of two trailing earnings per share performance targets established by the Compensation Committee that are based on earnings per share (measured at the end of each calendar quarter, commencing with the calendar quarter ending September 30, 2019) for the previous four calendar quarters. The Performance Shares are eligible to vest over the Performance Share Measurement Period and subject to each respective employee’s continued employment at the Company through the last day of the applicable Performance Share Measurement Period (or as otherwise provided under the terms of the applicable award agreement or applicable employment agreement). The Performance Share performance targets are set forth below.
The Restricted Stock awards will vest in six equal annual installments, beginning on the first anniversary of the grant date, subject to each respective employee’s continued employment at the Company through each applicable vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement. The Service Options will vest in six equal annual installments, beginning on the first anniversary of the grant date, subject to each respective employee’s continued employment at the Company through each applicable vesting date or otherwise provided under the terms of the applicable award agreement or applicable employment agreement. The option price is equal to the fair market value of the common stock on the grant date and the Service Options shall have a 10-year term. The Performance Options shall fully vest if the Company attains the trailing earnings per share target over four consecutive calendar quarters occurring between September 30, 2018 and March 31, 2025 described below. Such performance target was established by the Compensation Committee and will be measured at the end of each calendar quarter commencing on September 30, 2019. The Performance Options are eligible to vest over the Option Measurement Period, subject to each respective employee’s continued employment at the Company through the last day of the Option Measurement Period or as otherwise provided under the terms of the applicable award agreement or applicable employment agreement. The option price is equal to the fair market value of the common stock on the grant date and the Performance Options shall have a 10-year term. The Performance Option performance target is set forth below.
Stock Options The weighted-average fair value at the grant date for options issued during the three months ended December 31, 2018 and 2017 was $53.13 and $39.63, respectively. The weighted-average fair value at the grant date for options issued during the nine months ended December 31, 2018 and 2017 was $53.12 and $39.33, respectively. Fair value was estimated at grant date using the weighted-average assumptions listed below:
The expected stock price volatility is based on the historical volatility of the Company's common stock for a period approximating the expected life. The expected life represents the period of time that options are expected to be outstanding after the grant date. The risk-free rate reflects the interest rate at grant date on zero coupon U.S. governmental bonds having a remaining life similar to the expected option term. Option activity for the nine months ended December 31, 2018 was as follows:
The aggregate intrinsic value reflected in the table above represents the total pre-tax intrinsic value (the difference between the closing stock price on December 31, 2018 and the exercise price, multiplied by the number of in-the-money options) that would have been received by option holders had all option holders exercised their options as of December 31, 2018. This amount will change as the market price of the common stock changes. The total intrinsic value of options exercised during the periods ended December 31, 2018 and 2017 was as follows:
As of December 31, 2018, total unrecognized stock-based compensation expense related to non-vested stock options amounted to approximately $15.5 million, which is expected to be recognized over a weighted-average period of approximately 5.3 years. Restricted Stock During the nine months ended December 31, 2018, the Company granted 725,420 shares of restricted stock (which are equity classified) to certain vice presidents, senior vice presidents, executive officers and non-employee directors, with a grant date weighted average fair value of $100.99 per share. During fiscal 2018, the Company granted 24,456 shares of restricted stock (which are equity classified) to certain executive officers, with a grant date weighted average fair value of $107.52 per share. One-third of these awards vest on each anniversary of the grant date over the three years following the grant date. During fiscal 2017, the Company granted 74,490 shares of restricted stock (which are equity classified) to certain executive officers, with a grant date weighted average fair value of $51.15 per share. One-third of these awards vest on each anniversary of the grant date over the three years following the grant date. Compensation expense related to restricted stock is based on the number of shares expected to vest and the fair market value of the common stock on the grant date. The Company recognized compensation expense of $5.6 million and $0.3 million for the three months ended December 31, 2018 and 2017, respectively, and recognized compensation expense of $7.5 million and $1.6 million for the nine months ended December 31, 2018 and 2017, respectively, which is included as a component of general and administrative expenses in the Company’s Consolidated Statements of Operations. As of December 31, 2018, there was approximately $69.1 million of unrecognized compensation cost related to unvested restricted stock awards, which is expected to be recognized over the next 4.8 years based on current estimates. A summary of the status of the Company’s restricted stock as of December 31, 2018, and changes during the nine months ended December 31, 2018, are presented below:
Total Stock-Based Compensation Total stock-based compensation included as a component of net income during the three and nine-month periods ended December 31, 2018 and 2017 was as follows:
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ACQUISITIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS The Company evaluates each set of assets and activities it acquires to determine if the set meets the definition of a business according to FASB ASC Topic 805-10-55. Acquisitions meeting the definition of a business are accounted for as a business combination while all other acquisitions are accounted for as asset purchases. The following table sets forth the Company's acquisition activity for the nine months ended December 31, 2018 and 2017.
Acquisitions that are accounted for as business combinations typically result in one or more new branches. In such cases, the Company typically retains the existing employees and the branch location from the acquisition. The purchase price is allocated to the tangible assets and intangible assets acquired based upon their estimated fair market values at the acquisition date. The remainder is allocated to goodwill. The following table describes the Company's business combination activity for the nine months ended December 31, 2018.
Acquisitions that are accounted for as asset purchases are typically limited to acquisitions of loan portfolios. The purchase price is allocated to the tangible assets and intangible assets acquired based upon their estimated fair market values at the acquisition date. In an asset purchase, no goodwill is recorded. The Company’s acquisitions include tangible assets (generally loans and furniture and equipment) and intangible assets (generally non-compete agreements, customer lists, and goodwill), both of which are recorded at their fair values, which are estimated pursuant to the processes described below. Acquired loans are valued at the net loan balance. Given the short-term nature of these loans, generally eight months, and that these loans are priced at current rates, management believes the net loan balances approximate their fair value. Furniture and equipment are valued at the specific purchase price as agreed to by both parties at the time of acquisition, which management believes approximates their fair values. Non-compete agreements are valued at the stated amount paid to the other party for these agreements, which the Company believes approximates the fair value. Customer lists are valued with a valuation model that utilizes the Company’s historical data to estimate the value of any acquired customer lists. Customer lists are allocated at a branch level and are evaluated for impairment at a branch level when a triggering event occurs in accordance with FASB ASC Topic 360-10-05. If a triggering event occurs, the impairment loss to the customer list is generally the remaining unamortized customer list balance. In most acquisitions, the original fair value of the customer list allocated to a branch is less than $100,000, and management believes that in the event a triggering event were to occur, the impairment loss to an unamortized customer list would be immaterial. The results of all acquisitions have been included in the Company’s Consolidated Financial Statements since the respective acquisition date. The pro forma impact of these branches as though they had been acquired at the beginning of the periods presented would not have a material effect on the results of operations as reported. |
DEBT |
9 Months Ended |
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Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT At December 31, 2018, the Company's notes payable consisted of a $480.0 million senior revolving credit facility with borrowings of $308.0 million outstanding and a $300.0 thousand outstanding standby letter of credit related to workers compensation. To the extent that the letter of credit is drawn upon, the disbursement will be funded by the credit facility. There are no amounts due related to the letter of credit as of December 31, 2018. The letter of credit expires on December 31, 2019; however, it automatically extends for one year on the expiration date. Subject to a borrowing base formula, the Company may borrow at the rate of LIBOR plus an applicable margin between 3.0% and 4.0% based on certain EBITDA related metrics set forth in the revolving credit agreement, which will be determined and adjusted on a monthly basis with a minimum rate of 4.0%. For the nine months ended December 31, 2018 and fiscal year ended March 31, 2018, the Company’s effective interest rate, including the commitment fee and amortization of debt issuance costs, was 6.8% and 6.0%, respectively, and the unused amount available under the revolver at December 31, 2018 was $171.7 million. The revolving credit facility has a commitment fee of 0.50% per annum on the unused portion of the commitment. Borrowings under the revolving credit facility mature on June 15, 2020. Substantially all of the Company’s assets are pledged as collateral for borrowings under the revolving credit agreement. The revolving credit agreement contains events of default including, without limitation, nonpayment of principal, interest or other obligations, violation of covenants, misrepresentation, cross-default to other debt, bankruptcy and other insolvency events, judgments, certain ERISA events, actual or asserted invalidity of loan documentation, invalidity of subordination provisions of subordinated debt, certain changes of control of the Company, and the occurrence of certain regulatory events (including the entry of any stay, order, certain judgment, ruling or similar event related to the Company’s or any of its subsidiaries’ originating, holding, pledging, collecting or enforcing its eligible finance receivables that is material to the Company or any subsidiary) which remains unvacated, undischarged, unbonded or unstayed by appeal or otherwise for a period of 60 days from the date of its entry and is reasonably likely to cause a material adverse change. If it is determined that a violation of the FCPA or other laws has occurred, as described in Note 11, such violation may give rise to an event of default under the revolving credit agreement if such violation were to have a material adverse effect on the Company’s business, operations, properties, assets, or condition (financial or otherwise) or if the amount of any settlement resulted in the Company failing to satisfy any financial covenants. |
INCOME TAXES |
9 Months Ended |
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Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act. The TCJA included significant changes to existing tax law, including a permanent reduction to the U.S. federal corporate income tax rate from 35% to 21%, a one-time repatriation tax on deferred foreign income (“Transition Tax”), and changes in deductions, credits and business-related exclusions. The permanent reduction to the U.S. federal corporate income tax rate from 35% to 21% was effective on January 1, 2018. When a federal tax rate change occurs during a fiscal year, the Internal Revenue Code requires taxpayers to compute a weighted daily average rate for the fiscal year of enactment. As a result, the Company calculated a U.S. federal statutory corporate income tax rate of 31.55% for the fiscal year ending March 31, 2018. The U.S. corporate federal statutory rate of 31.55% is the weighted daily average rate between the pre-enactment federal statutory rate of 35% and post-enactment federal statutory rate of 21%. The impact of changes in federal tax rates on deferred tax amounts and the effect of the Transition Tax are significant unusual or infrequent items which are recognized as discrete items in the Company’s income tax expense in the interim period in which the event occurs. The Company recorded a $10.5 million net impact of revaluing the U.S. deferred tax assets and liabilities in the third quarter of fiscal 2018. The Company also recorded additional tax expense of $4.9 million related to the Transition Tax during the fourth quarter of fiscal 2018. During the first quarter of fiscal 2019, the Company's former Mexican subsidiaries paid the U.S. Company a dividend of $17.1 million. The Company will no longer claim permanent reinvestment in the respective foreign jurisdiction. Because of the Transition Tax, the Company's tax basis was greater than its book basis. This difference was recognized during the first quarter when the foreign subsidiaries were marked as held for sale. The recognition of the basis difference created a capital loss that the Company does not believe will be recognized in the carryforward period; therefore, a full tax valuation allowance was recorded against the recognized loss. As of December 31, 2018 and March 31, 2018, the Company had $6.6 million and $8.8 million, respectively, of total gross unrecognized tax benefits including interest. Approximately $5.3 million and $6.9 million, respectively, represent the amount of net unrecognized tax benefits that are permanent in nature and, if recognized, would affect the annual effective tax rate. At December 31, 2018, approximately $1.4 million of gross unrecognized tax benefits are expected to be resolved during the next twelve months through the expiration of the statute of limitations and settlement with taxing authorities. The Company’s continuing practice is to recognize interest and penalties related to income tax matters in income tax expense. As of December 31, 2018, the Company had approximately $1.8 million accrued for gross interest, of which $0.5 million was accrued during the nine months ended December 31, 2018. The Company is subject to U.S. income taxes, as well as various other state and local jurisdictions. With the exception of a few states, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2015, although carryforward attributes that were generated prior to 2015 may still be adjusted upon examination by the taxing authorities if they either have been or will be used in a future period. The Company’s effective income tax rate for continuing operations decreased to 11.8% for the quarter ended December 31, 2018 compared to 98.7% for the prior year quarter. The decrease is primarily due to the $10.5 million charge to tax expense related to the revaluing of the deferred tax asset recorded as a discrete item in the prior year quarter, the reduction in the federal statutory tax rate that was fully integrated during the first quarter of fiscal 2019, and the lapse of the statute of limitations on several items resulting in the Company releasing $1.6 million of reserves during the current year quarter. |
LITIGATION |
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Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | Mexico Investigation As previously disclosed, the Company has retained outside legal counsel and forensic accountants to conduct an investigation of its operations in Mexico, focusing on the legality under the FCPA, and certain local laws of certain payments related to loans, the maintenance of the Company’s books and records associated with such payments, and the treatment of compensation matters for certain employees. The investigation continues to address whether and to what extent improper payments, which may violate the FCPA and other local laws, were made approximately between 2010 and 2017 by or on behalf of WAC de Mexico, to government officials in Mexico relating to loans made to unionized employees. The Company voluntarily contacted the SEC and the DOJ in June 2017 to advise both agencies that an internal investigation was underway and that the Company intended to cooperate with both agencies. The Company has and will continue to cooperate with both agencies. The SEC has issued a formal order of investigation. A conclusion cannot be drawn at this time as to what potential remedies these agencies may seek. The Company cannot determine at this time the ultimate effect that the investigation or any remedial measures will have on its financial condition or results of operations. If violations of the FCPA or other local laws occurred, the Company could be subject to fines, civil and criminal penalties, equitable remedies, including profit disgorgement and related interest, and injunctive relief. In addition, any disposition of these matters could result in modifications to our business practices and compliance programs. Any disposition could also potentially require that a monitor be appointed to review future business practices with the goal of ensuring compliance with the FCPA and other applicable laws. The Company could also face fines, sanctions, and other penalties from authorities in Mexico, as well as third-party claims by shareholders and/or other stakeholders of the Company. In addition, disclosure of the investigation or its ultimate disposition could adversely affect the Company’s reputation and its ability to obtain new business or retain existing business from its current customers and potential customers, to attract and retain employees, and to access the capital markets. If it is determined that a violation of the FCPA has occurred, such violation may give rise to an event of default under the Company’s credit agreement if such violation were to have a material adverse effect on the Company’s business, operations, properties, assets, or condition (financial or otherwise) or if the amount of any settlement, penalties, fines or other payments resulted in the Company failing to satisfy any financial covenants. Additional potential FCPA violations or violations of other laws or regulations may be uncovered through the investigation. In addition to the ultimate liability for disgorgement and related interest, the Company believes that it could be further liable for fines and penalties. The Company is continuing its discussions with the DOJ and SEC regarding the matters under investigation, but the Company cannot reasonably estimate the amount of any fine or penalty that it may have to pay as a part of any possible settlement or assess the potential liability that might be incurred if a settlement is not reached and the government were to litigate the matter. As such, based on the information available at this time, any additional liability related to this matter is not reasonably estimable. The Company will continue to evaluate the amount of its liability pending final resolution of the investigation and any related discussions with the government. Further, under the terms of the stock purchase agreement, we are obligated to indemnify the purchasers for claims and liabilities relating to certain investigations of our former Mexico operating segment, the Company, and its affiliates by the DOJ or the SEC that commenced prior to July 1, 2018. Any such indemnification claims could have a material adverse effect on our financial condition, including liquidity, and results of operations. General In addition, from time to time the Company is involved in litigation matters relating to claims arising out of its operations in the normal course of business. Estimating an amount or range of possible losses resulting from litigation, government actions and other legal proceedings is inherently difficult and requires an extensive degree of judgment, particularly where the matters involve indeterminate claims for monetary damages, may involve fines, penalties or damages that are discretionary in amount, involve a large number of claimants or significant discretion by regulatory authorities, represent a change in regulatory policy or interpretation, present novel legal theories, are in the early stages of the proceedings, are subject to appeal or could result in a change in business practices. In addition, because most legal proceedings are resolved over extended periods of time, potential losses are subject to change due to, among other things, new developments, changes in legal strategy, the outcome of intermediate procedural and substantive rulings and other parties’ settlement posture and their evaluation of the strength or weakness of their case against us. For these reasons, we are currently unable to predict the ultimate timing or outcome of, or reasonably estimate the possible losses or a range of possible losses resulting from, the matters described above. Based on information currently available, the Company does not believe that any reasonably possible losses arising from currently pending legal matters will be material to the Company’s results of operations or financial condition. However, in light of the inherent uncertainties involved in such matters, an adverse outcome in one or more of these matters could materially and adversely affect the Company’s financial condition, results of operations or cash flows in any particular reporting period. |
Subsequent Events (Notes) |
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Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 12 – SUBSEQUENT EVENTS Management is not aware of any significant events occurring subsequent to the balance sheet date that would have a material effect on the financial statements thereby requiring adjustment or disclosure. |
Discontinued Operations (Notes) |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 2 – DISCONTINUED OPERATIONS As previously disclosed, the Company sold all of the issued and outstanding capital stock and equity interest of WAC de Mexico and SWAC to the Purchasers, effective as of July 1, 2018, for a purchase price of approximately $44.36 million. The Company has provided, and may continue to provide, limited ParaData systems and software training to the Purchasers, as requested. The Company has not and will not have any other involvement with the Mexico operating segment subsequent to the sale's effective date. The following table reconciles the major classes of assets and liabilities of discontinued operations to the amounts presented in the Consolidated Balance Sheet for March 31, 2018:
The following table reconciles the major classes of line items constituting pre-tax income (loss) of discontinued operations to the amounts presented in the Consolidated Statements of Operations:
The following table presents operating, investing and financing cash flows for the Company’s discontinued operations:
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FAIR VALUE (Tables) |
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Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | The carrying amounts and estimated fair values of amounts the Company measures at fair value on a recurring basis are summarized below.
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ALLOWANCE FOR LOAN LOSSES (Tables) |
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Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The following is a summary of gross loans receivable as of:
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Summary of changes in the allowance for loan losses | The following is a summary of the changes in the allowance for loan losses for the periods indicated:
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Summary of loans individually and collectively evaluated for impairment | The following is a summary of loans individually and collectively evaluated for impairment for the period indicated:
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Assessment of the credit quality | The following is an assessment of the credit quality for the period indicated:
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Summary of the past due receivables | The following is a summary of the past due receivables as of:
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AVERAGE SHARE INFORMATION (Tables) |
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Summary of basic and diluted average common shares outstanding | The following is a summary of the basic and diluted average common shares outstanding:
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STOCK-BASED COMPENSATION (Tables) |
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | Fair value was estimated at grant date using the weighted-average assumptions listed below:
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Tabular disclosure of performance shares vesting based on EPS targets [Table Text Block] | The Performance Option performance target is set forth below.
The Performance Share performance targets are set forth below.
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Summary schedule of stock option activity | ption activity for the nine months ended December 31, 2018 was as follows:
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Intrinsic value of options exercised | The total intrinsic value of options exercised during the periods ended December 31, 2018 and 2017 was as follows:
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Summary of the status and changes restricted stock | A summary of the status of the Company’s restricted stock as of December 31, 2018, and changes during the nine months ended December 31, 2018, are presented below:
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Share-based compensation included as a component of net income | Total stock-based compensation included as a component of net income during the three and nine-month periods ended December 31, 2018 and 2017 was as follows:
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ACQUISITIONS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition activity | ACQUISITIONS The Company evaluates each set of assets and activities it acquires to determine if the set meets the definition of a business according to FASB ASC Topic 805-10-55. Acquisitions meeting the definition of a business are accounted for as a business combination while all other acquisitions are accounted for as asset purchases. The following table sets forth the Company's acquisition activity for the nine months ended December 31, 2018 and 2017.
Acquisitions that are accounted for as business combinations typically result in one or more new branches. In such cases, the Company typically retains the existing employees and the branch location from the acquisition. The purchase price is allocated to the tangible assets and intangible assets acquired based upon their estimated fair market values at the acquisition date. The remainder is allocated to goodwill. The following table describes the Company's business combination activity for the nine months ended December 31, 2018.
Acquisitions that are accounted for as asset purchases are typically limited to acquisitions of loan portfolios. The purchase price is allocated to the tangible assets and intangible assets acquired based upon their estimated fair market values at the acquisition date. In an asset purchase, no goodwill is recorded. The Company’s acquisitions include tangible assets (generally loans and furniture and equipment) and intangible assets (generally non-compete agreements, customer lists, and goodwill), both of which are recorded at their fair values, which are estimated pursuant to the processes described below. Acquired loans are valued at the net loan balance. Given the short-term nature of these loans, generally eight months, and that these loans are priced at current rates, management believes the net loan balances approximate their fair value. Furniture and equipment are valued at the specific purchase price as agreed to by both parties at the time of acquisition, which management believes approximates their fair values. Non-compete agreements are valued at the stated amount paid to the other party for these agreements, which the Company believes approximates the fair value. Customer lists are valued with a valuation model that utilizes the Company’s historical data to estimate the value of any acquired customer lists. Customer lists are allocated at a branch level and are evaluated for impairment at a branch level when a triggering event occurs in accordance with FASB ASC Topic 360-10-05. If a triggering event occurs, the impairment loss to the customer list is generally the remaining unamortized customer list balance. In most acquisitions, the original fair value of the customer list allocated to a branch is less than $100,000, and management believes that in the event a triggering event were to occur, the impairment loss to an unamortized customer list would be immaterial. The results of all acquisitions have been included in the Company’s Consolidated Financial Statements since the respective acquisition date. The pro forma impact of these branches as though they had been acquired at the beginning of the periods presented would not have a material effect on the results of operations as reported. |
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Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following table sets forth the Company's acquisition activity for the nine months ended December 31, 2018 and 2017.
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Discontinued Operations Reconciliation to consolidated balance sheet (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | The following table reconciles the major classes of assets and liabilities of discontinued operations to the amounts presented in the Consolidated Balance Sheet for March 31, 2018:
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Discontinued Operations Reconciliation to consolidated statement of operations (Tables) |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table reconciles the major classes of line items constituting pre-tax income (loss) of discontinued operations to the amounts presented in the Consolidated Statements of Operations:
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Discontinued Operations Cash flow disposal group (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table presents operating, investing and financing cash flows for the Company’s discontinued operations:
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SUMMARY OF SIGNIFICANT POLICIES Accounting Standards (Details) |
Dec. 31, 2017
USD ($)
|
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Accounting Policies [Abstract] | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 2,405,329 |
RECEIVABLES AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
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Financing Receivable, Impaired [Line Items] | |||||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | $ 46,300,000 | $ 42,100,000 | |||||
Allowance for Loan Losses [Roll Forward] | |||||||
Balance at beginning of period | $ 79,310,375 | $ 71,172,677 | 66,088,139 | 60,644,365 | |||
Provision for loan losses | 48,943,886 | 40,455,513 | 119,893,201 | 100,989,538 | |||
Loan losses | (40,001,055) | (33,550,642) | (105,014,401) | (91,047,277) | |||
Recoveries | 3,052,628 | 3,242,943 | 10,338,895 | 10,733,865 | |||
Balance at end of period | 91,305,834 | 81,320,491 | 91,305,834 | 81,320,491 | |||
Summary of loans individually and collectively evaluated for impairment [Abstract] | |||||||
Bankruptcy, gross loans | $ 4,714,475 | $ 4,627,599 | $ 4,507,307 | ||||
91 days or more delinquent, excluding bankruptcy | 62,834,979 | 50,019,567 | 57,019,347 | ||||
Loans less than 91 days delinquent and not in bankruptcy | 1,191,358,451 | 949,585,993 | 1,065,892,727 | ||||
Loans and Leases Receivable, Gross | 1,258,907,905 | 1,004,233,159 | 1,127,419,381 | ||||
Unearned interest and fees | (338,132,479) | (258,991,492) | (300,196,411) | ||||
Net loans | 920,775,426 | 745,241,667 | 827,222,970 | ||||
Allowance for loan losses | (79,310,375) | (71,172,677) | (66,088,139) | (60,644,365) | (91,305,834) | (66,088,139) | (81,320,491) |
Loans receivable, net | 829,469,592 | 679,153,528 | 745,902,479 | ||||
Loans individually evaluated for impairment (impaired loans) [Member] | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Balance at beginning of period | 38,782,574 | ||||||
Balance at end of period | 48,104,640 | 44,092,718 | 48,104,640 | 44,092,718 | |||
Summary of loans individually and collectively evaluated for impairment [Abstract] | |||||||
Bankruptcy, gross loans | 4,714,475 | 4,627,599 | 4,507,307 | ||||
91 days or more delinquent, excluding bankruptcy | 62,834,979 | 50,019,567 | 57,019,347 | ||||
Loans less than 91 days delinquent and not in bankruptcy | 0 | 0 | 0 | ||||
Loans and Leases Receivable, Gross | 67,549,454 | 54,647,166 | 61,526,654 | ||||
Unearned interest and fees | (14,930,704) | (11,433,666) | (13,118,190) | ||||
Net loans | 52,618,750 | 43,213,500 | 48,408,464 | ||||
Allowance for loan losses | (48,104,640) | (44,092,718) | (38,782,574) | (44,092,718) | (48,104,640) | (38,782,574) | (44,092,718) |
Loans receivable, net | 4,514,110 | 4,430,926 | 4,315,746 | ||||
Loans collectively evaluated for impairment [Member] | |||||||
Allowance for Loan Losses [Roll Forward] | |||||||
Balance at beginning of period | 27,305,565 | ||||||
Balance at end of period | 43,201,194 | 37,227,773 | 43,201,194 | 37,227,773 | |||
Summary of loans individually and collectively evaluated for impairment [Abstract] | |||||||
Bankruptcy, gross loans | 0 | 0 | 0 | ||||
91 days or more delinquent, excluding bankruptcy | 0 | 0 | 0 | ||||
Loans less than 91 days delinquent and not in bankruptcy | 1,191,358,451 | 949,585,993 | 1,065,892,727 | ||||
Loans and Leases Receivable, Gross | 1,191,358,451 | 949,585,993 | 1,065,892,727 | ||||
Unearned interest and fees | (323,201,775) | (247,557,826) | (287,078,221) | ||||
Net loans | 868,156,676 | 702,028,167 | 778,814,506 | ||||
Allowance for loan losses | $ (43,201,194) | $ (37,227,773) | $ (27,305,565) | $ (37,227,773) | (43,201,194) | (27,305,565) | (37,227,773) |
Loans receivable, net | $ 824,955,482 | $ 674,722,602 | $ 741,586,733 |
ALLOWANCE FOR LOAN LOSSES Financing Receivables (Details) - USD ($) |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | $ 1,258,907,905 | $ 1,004,233,159 | $ 1,127,419,381 |
Small loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | 857,945,959 | 670,189,211 | 774,416,024 |
Large loans [Member] [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | 400,961,429 | 334,041,731 | 352,999,300 |
Sales finance loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Gross | $ 517 | $ 2,217 | $ 4,057 |
AVERAGE SHARE INFORMATION (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Basic: | ||||
Weighted average common shares outstanding (in shares) | 9,108,516 | 8,787,835 | 9,078,576 | 8,729,710 |
Diluted: | ||||
Weighted average common shares outstanding (in shares) | 9,108,516 | 8,787,835 | 9,078,576 | 8,729,710 |
Dilutive potential common shares stock options (in shares) | 170,318 | 150,125 | 196,492 | 157,053 |
Weighted average diluted shares outstanding (in shares) | 9,278,834 | 8,937,960 | 9,275,068 | 8,886,763 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 701,484 | 338,489 | 552,337 | 392,609 |
Net Income (Loss) Attributable to Parent | $ 6,260,162 | $ 1,680,217 | $ (705,487) | $ 24,547,248 |
Earnings Per Share, Basic | $ 0.69 | $ 0.19 | $ (0.08) | $ 2.81 |
Earnings Per Share, Diluted | $ 0.67 | $ 0.19 | $ (0.08) | $ 2.76 |
ACQUISITIONS (Details) |
9 Months Ended | |
---|---|---|
Dec. 31, 2018
USD ($)
acquisition
|
Dec. 31, 2017
USD ($)
acquisition
|
|
Business Acquisition [Line Items] | ||
Number of offices purchased | acquisition | 14 | |
Average contractual loan terms | 8 months | |
Number of Businesses Acquired | acquisition | 3 | |
Number Of Offices Purchased and Merged into Existing Offices | acquisition | 83 | 25 |
Total acquisitions | acquisition | 97 | 28 |
Purchase Price | $ 10,706,894 | |
Business Combination, Acquired Receivable, Fair Value | $ 30,232,918 | 8,826,565 |
Intangible Assets, Net (Including Goodwill) | 8,951,590 | 1,877,329 |
Furniture, fixtures & equipment | 0 | 3,000 |
Total tangible assets | 30,232,918 | 8,829,565 |
Finite-Lived Customer Lists, Gross | 8,456,590 | 770,086 |
Finite-Lived Noncompete Agreements, Gross | 495,000 | 140,000 |
Goodwill, Fair Value Disclosure | 0 | $ 967,243 |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Purchase Price | $ 39,184,508 |
DEBT (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Mar. 31, 2018 |
|
Line of Credit Facility [Line Items] | ||
Letters of Credit Outstanding, Amount | $ 300,000 | |
Basis spread on variable rate (in hundredths) | 4.00% | |
Debt Instrument, Interest Rate, Effective Percentage | 6.78% | 5.98% |
Debt Instrument, Unused Borrowing Capacity, Fee | $ 0.0050 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 480,000,000 | |
Amount outstanding | $ 308,000,000 | |
Reference rate | LIBOR | |
Unused amount available | $ 171,700,000 | |
Expiration date | Jun. 15, 2020 | |
Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Reference rate | .04 |
INCOME TAXES (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Income Tax Contingency [Line Items] | |||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 17,100,000 | ||
Total gross unrecognized tax benefits including interest | $ 6,559,781 | $ 8,809,626 | 6,559,781 |
Unrecognized tax benefits that are permanent in nature and, if recognized, would affect the annual effective tax rate | 5,259,288 | $ 6,884,299 | 5,259,288 |
Gross unrecognized tax benefits expected to be resolved during the next 12 months through settlements with taxing authorities or the expiration of the statute of limitations | 1,407,928 | 1,407,928 | |
Accrued gross interest | $ 1,821,391 | 1,821,391 | |
Current period gross interest expense | $ 528,034 | ||
Effective Income Tax Rate Reconciliation, Percent | 11.80% | 98.70% |
Discontinued Operations Cash flow for discontinued operations (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Discontinued Operations and Disposal Groups [Abstract] | ||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | $ 3,553,854 | $ 15,224,142 |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 1,138,084 | (5,511,573) |
Cash Provided by (Used in) Financing Activities, Discontinued Operations | $ (17,126,000) | $ 0 |
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