Nicholas Financial Inc (NICK) SEC Filing 10-K Annual report for the fiscal year ending Thursday, March 31, 2016

Exhibit 99.1

				FOR IMMEDIATE RELEASE
Nicholas Financial, Inc. Corporate Headquarters   2454 McMullen-Booth Rd. Building C, Suite 501 Clearwater, FL 33759		Contact: Katie L. MacGillivary                 CFO & VP Finance                 Ph # - 727-726-0763		NASDAQ: NICK Web site: www.nicholasfinancial.com

Nicholas Financial Reports

4th Quarter Results

May 9, 2016 – Clearwater, Florida—Nicholas Financial, Inc. (NASDAQ: NICK) announced that for the three months ended March 31, 2016, diluted earnings per share increased 6% to $0.35 as compared to $0.33 for the three months ended March 31, 2015. Net earnings were $2,725,000 and $3,848,000 for the three months ended March 31, 2016 and 2015, respectively. Revenue increased 6% to $23,238,000 for the three months ended March 31, 2016 as compared to $21,934,000 for the three months ended March 31, 2015.

For the year ended March 31, 2016, diluted earnings per share increased 15% to $1.59 as compared to $1.38 for the year ended March 31, 2015. Net earnings were $12,379,000 and $16,856,000 for the year ended March 31, 2016 and 2015, respectively. Revenue increased 5% to $90,707,000 for the year ended March 31, 2016 as compared to $86,790,000 for the year ended March 31, 2015.

Our net earnings for the three months ended March 31, 2016 were adversely affected primarily by an increase in the provision for credit losses and to a lesser extent an increase in interest expense and a reduction in the gross portfolio yield. During the three months ended March 31, 2016, the Company refined its allowance for credit loss model to incorporate recent trends that include the acquisition of longer term contracts and increased delinquencies. We feel that these improvements to our current model better reflect the current trends of incurred losses within our portfolio and better align our allowance for credit losses with the portfolio’s performance indicators. Our per share diluted net earnings for the three months ended March 31, 2016, were positively impacted by the Company’s purchase of 4.7 million of the Company’s common shares by its principal operating subsidiary on March 19, 2015.

Our net earnings for the twelve months ended March 31, 2016 were adversely affected by a reduction in the gross portfolio yield, an increase in interest expense and an increase in the provision for credit losses. Gross portfolio yield and provision for credit losses changes were primarily the result of increased competition. Our per share diluted net earnings for the twelve months ended March 31, 2016, were positively impacted by the Company’s purchase of 4.7 million of the Company’s common shares by its principal operating subsidiary on March 19, 2015.

“During our fourth quarter we opened our second branch location in the state of Texas, specifically in Dallas, We have also commenced contract acquisition in Pittsburgh, Pennsylvania utilizing the underwriting staff of our Columbus, Ohio branch location. During the first quarter of Fiscal 2017 we will further evaluate the Pittsburgh portfolio and decide whether we will open a Pittsburgh branch. We continue to evaluate market conditions which include a continued high level of intense competition. We are currently evaluating our organization and its structure. Our decisions on how we plan to continue operating our business strategy will be influenced by the sustainability of some of our competitors underwriting and risk based pricing” stated Ralph T. Finkenbrink, the Company’s President and CEO.

Nicholas Financial, Inc. is one of the largest publicly traded specialty consumer finance companies in North America. The Company operates branch locations in both the Southeastern and the Midwestern states. The Company has approximately 7,753,000 shares of common stock outstanding. For an index of Nicholas Financial, Inc.’s news releases or to obtain a specific release, visit our web site at www.nicholasfinancial.com.

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that involve risks and uncertainties including general economic conditions, access to bank financing, and other risks detailed from time to time in the Company’s filings and reports with the Securities and Exchange Commission including the Company’s Annual Report on Form 10-K for the year ended March 31, 2015. Such statements are based on the beliefs of the Company’s management as well as assumptions made by and information currently available to Company management. Actual events or results may differ materially. All forward looking statements and cautionary statements included in this document are made as of the date hereby based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward looking statement or cautionary statement.

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