Note L - Correction of An Immaterial Error In Previously Issued Financial Statements

6 Months Ended

Oct. 31, 2022

Notes to Financial Statements

Error Correction [Text Block]

L – Correction of an Immaterial Error in Previously Issued Financial Statements

Subsequent to the issuance of our interim financial statements for the period ended July 31, 2022, certain immaterial errors were identified and have been corrected in our historical information related to the classification of deferred revenue of ancillary products at the time an account is charged off and the calculation for allowance for credit losses.  The amount of deferred revenue related to ancillary products for a customer account that is charged off has historically been recognized as sales revenue at the time of charge-off because the performance obligations for the deferred revenue are no longer required to be delivered by the Company at the time of charge-off.  It was determined that this amount should be recorded as a reduction to customer accounts receivable at the time of charge-off, thus reducing the amounts historically reported in sales revenue, net charge-offs, the provision for credit losses and the allowance for credit losses as well as the corresponding deferred tax liability. As a result, certain amounts for sales revenue, provision for credit losses, charge-offs, net of collateral recovered, the allowance for credit losses and other related amounts have been revised from the amounts previously reported to correct these errors. Management has evaluated the materiality of these corrections to its prior period financial statements from a quantitative and qualitative perspective and has concluded that this change was not material to any prior annual or interim period.

The effects of the corrections to each of the individual affected line items in our Consolidated Balance Sheets and Consolidated Statements of Operations were as follows (in thousands):

	April 30, 2022
(In thousands)	As Previously Reported		Corrections		As Corrected
Finance receivables, net	$	854,290	$	9,384	$	863,674
Deferred income tax liabilities, net		28,233		2,216		30,449
Retained earnings		658,242		7,168		665,410

	Six Months Ended October 31, 2021
(In thousands)	As Previously Reported		Corrections			As Corrected
Sales	$	498,025	$	(6,602	)	$	491,423
Provision for credit losses		115,055		(8,714	)		106,341
Provision for income taxes		13,409		493			13,902
Net income		47,860		1,619			49,479
Net income attributable to common shareholders		47,840		1,619			49,459
Earnings per share:
Basic		7.28		0.25			7.53
Diluted		6.90		0.24			7.14

	Three Months Ended October 31, 2021
(In thousands)	As Previously Reported		Corrections			As Corrected
Sales	$	251,282	$	(3,762	)	$	247,520
Provision for credit losses		60,947		(4,456	)		56,491
Provision for income taxes		6,618		162			6,780
Net income		22,893		532			23,425
Net income attributable to common shareholders		22,883		532			23,415
Earnings per share:
Basic		3.50		0.09			3.59
Diluted		3.33		0.08			3.41

	Three Months Ended July 31, 2022
(In thousands)	As Previously Reported		Corrections			As Corrected
Sales	$	300,540	$	(6,064	)	$	294,476
Provision for credit losses		82,903		(6,662	)		76,241
Provision for income taxes		3,884		143			4,027
Net income		13,242		455			13,697
Net income attributable to common shareholders		13,242		455			13,697
Earnings per share:
Basic		2.08		0.07			2.15
Diluted		2.00		0.07			2.07