Nicholas Financial Inc (NICK) SEC Filing 10-Q Quarterly Report for the period ending Friday, September 30, 2022

Exhibit 99.1

Nicholas Financial Reports

2nd Quarter Fiscal Year 2023 Results

November 4, 2022 – Clearwater, Florida - Nicholas Financial, Inc. (NASDAQ: NICK) announced a net loss for the three months ended September 30, 2022 of $3.2 million compared to net income of $1.6 million for the three months ended September 30, 2021. Diluted net loss per share was $0.44 for the three months ended September 30, 2022 as compared to diluted net income per share of $0.21 for the three months ended September 30, 2021. Interest and fee income on finance receivables decreased 2.6% to $12.2 million for the three months ended September 30, 2022 as compared to $12.6 million for the three months ended September 30, 2021. Provision for credit losses increased 538.4% to $8.9 million for the three months ended September 31, 2022 as compared to $1.4 million for the three months ended September 30, 2021. The Company reported a loss before income taxes for the three months ended September 30, 2022 of $4.1 million compared to income before income taxes of $2.1 million for the three months ended September 30, 2021. The Company recorded an income tax benefit of approximately $1.0 million during the three months ended September 30, 2022 as compared to income tax expense of $0.5 million during the three months ended September 30, 2021.

The Company announced net loss for the six months ended September 30, 2022 of $4.9 million compared to net income of $3.3 million for the six months ended September 30, 2021. Diluted net loss per share was $0.68 for the six months ended September 30, 2022 as compared to net income per share of $0.44 for the six months ended September 30, 2021. Interest and fee income on finance receivables decreased 3.4% to $24.3 million for the six months ended September 30, 2022 as compared to $25.2 million for the six months ended September 30, 2021. Provision for credit losses increased 490.6% to $12.6 million for the six months ended September 31, 2022 as compared to $2.1 million for the six months ended September 30, 2021.The Company reported a loss before income taxes for the six months ended September 30, 2022 of $6.5 million compared to income before taxes of $4.5 million for the six months ended September 30, 2021. The Company recorded an income tax benefit of approximately $1.6 million during the six months ended September 30, 2022 as compared to income tax expense of $1.1 million during the six months ended September 30, 2021.

For the six months ended September 30, 2022, the Company originated $56.2 million in finance receivables, collected $54.7 million in principal payments, increased debt by $1.3 million and decreased cash by $3.3 million.

"The net loss of $3.2 million for the fiscal quarter is predicated on the increased level of charge-offs the company has realized this past quarter. With the rise in charge-offs, the provision for credit losses also increased substantially as we expect continued normalization of the portfolio losses." commented Mike Rost, CEO of Nicholas Financial.

"We are diligently adjusting to the economy and market. The financial results emphasized the urgency to focus on servicing our portfolio, reducing operating expenses, originating quality receivables, and regaining profitability as our top priorities," Rost concluded.