World Acceptance Corporation (WRLD) CEO Chad Prashad on Q2 2022 Results - Earnings Call Transcript

World Acceptance Corporation (NASDAQ:WRLD) Q2 2022 Earnings Conference Call October 26, 2021 10:00 AM ET

Company Participants

Chad Prashad - President & Chief Executive Officer
John Calmes - Chief Financial & Strategy Officer

Conference Call Participants

Vincent Caintic - Stephens Inc.
John Rowan - Janney Montgomery Scott

Operator

Good morning, and welcome to the World Acceptance Fiscal 2022 Second Quarter Earnings Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Chad Prashad, President and Chief Executive Officer. Please go ahead.

Chad Prashad

Good morning, and thank you for joining our fiscal second quarter 2022 earnings call. Before we open up to questions, there are a few areas that I'd like to highlight.

First of all, I'm pleased to report that we experienced record originations growth in this most recent quarter. The overall portfolio grew $170 million or 25.7% year-over-year. In fact, it was the largest single quarter growth on record. Further, we experienced this broad growth across all customer types on the strength of a record number of customer applications for credit. In particular, we saw tremendous increases in new and returning customer loan volume when compared to last year or even pre-pandemic levels, with both customer types loan origination volumes increasing by more than 40% when compared to the same quarter 2 years ago, which is the most recent pre-pandemic comparison. Refinance volumes returned to and slightly exceeded pre-pandemic levels as well.

To help fund this growth, we're proud to have completed the company's first 144A bond issuance, providing additional $300 million in working capital. This funding channel diversifies our capital structure and provides stability to the company moving forward. In addition, we still