Nicholas Financial Inc (NICK) SEC Filing 10-Q Quarterly Report for the period ending Thursday, September 30, 2021

Exhibit 99.1

Nicholas Financial Reports

2nd Quarter Fiscal Year 2022 Results

October 29, 2021 – Clearwater, Florida - Nicholas Financial, Inc. (NASDAQ: NICK) announced net income for the three months ended September 30, 2021 of $1.6 million compared to $1.3 million for the three months ended September 30, 2020. Diluted net income per share was $0.21 for the three months ended September 30, 2021 as compared to $0.16 for the three months ended September 30, 2020. Revenue decreased 10.6% to $12.6 million for the three months ended September 30, 2021 as compared to $14.1 million for the three months ended September 30, 2020. The Company reported income before income taxes for the three months ended September 30, 2021 of $2.1 million compared to $1.4 million for the three months ended September 30, 2020. The Company recorded an income tax expense of approximately $0.5 million during the three months ended September 30, 2021 as compared to $0.1 million during the three months ended September 30, 2020.

The Company announced net income for the six months ended September 30, 2021 of $3.3 million compared to $2.7 million for the six months ended September 30, 2020. Diluted net income per share was $0.44 for the six months ended September 30, 2021 as compared to $0.34 for the six months ended September 30, 2020. Revenue decreased 10.8% to $25.2 million for the six months ended September 30, 2021 as compared to $28.2 million for the six months ended September 30, 2020. The Company reported income before income taxes for the six months ended September 30, 2021 of $4.5 million compared to $3.2 million for the six months ended September 30, 2020. The Company recorded an income tax expense of approximately $1.1 million during the six months ended September 30, 2021 as compared to $0.5 million during the six months ended September 30, 2020.

For the six months ended September 30, 2021, the Company originated $52.0 million in finance receivables, collected $59.4 million in principal payments, reduced debt by $16.8 million and cash by $10.1 million.

“Although the consistent excellent portfolio performance is great, we are even more encouraged by our ability to once again increase our Indirect contract originations on a year over year basis for the third quarter in a row,” commented Doug Marohn, President and CEO of Nicholas Financial, Inc. “We have also been able to do the same on Direct Loan production, only on a significantly larger scale. Our continued ability to increase both Indirect and Direct origination volume has been a key factor in reducing our portfolio liquidation as we look toward receivable growth in fiscal year 2022 and beyond.”