Exhibit 99.1

 

 

 

FOR IMMEDIATE RELEASE

Nicholas

 

 

Contact: Kelly Malson

 

NASDAQ: NICK

Nicholas Financial, Inc.

Corporate Headquarters

2454 McMullen-Booth Rd.

Building C, Suite 501

Clearwater, FL 33759

 

               CFO

               Ph #  (727)-726-0763

 

Web site: www.nicholasfinancial.com

 

Nicholas Financial Reports

4th Quarter Results and Fiscal Year 2019 Results

 

Accounts 60+ days delinquent remained flat at approximately 3.3%, excluding Chapter 13 bankruptcy accounts

 

Average APR on new contracts purchased during the quarter continued to increase to 23.5% compared to 23.3% during the prior year fourth quarter

 

Interest and fee income on finance receivables decreased 17.4% due to a 21.5% decrease in average finance receivables, compared to prior year fourth quarter

 

The charge-off policy changed to 121+ days, resulting in a one-time increase in the provision for credit losses of approximately $4.9 million in the current year fourth quarter

May 29, 2019 – Clearwater, Florida - Nicholas Financial, Inc. (NASDAQ: NICK) announced a net loss for the three months ended March 31, 2019 of $4.7 million compared to a net income of $0.6 million for the three months ended March 31, 2018. Diluted net loss per share was $0.60 for the three months ended March 31, 2019 as compared to net  income per share of $0.08 for the three months ended March 31, 2018. Revenue decreased 17.4% to $16.4 million for the three months ended March 31, 2019 as compared to $19.9 million for the three months ended March 31, 2018. The Company reported an operating loss before income taxes for the three months ended March 31, 2019 of $6.0 million compared to operating income of $0.5 million for the three months ended March 31, 2018.   The Company recorded an income tax benefit of approximately $1.2 million during the current quarter compared to $0.2 million during the three months ended March 31, 2018.  This change was attributed to the Company reporting an operating loss for the current quarter.  

“Fiscal Year 2019 was a transitional year for Nicholas Financial,” said Doug Marohn, president and CEO.  “We have worked hard to return to underwriting primary transportation to and from work for subprime customers, making for improved overall loan metrics.  At  a loan level, we reduced the amount financed and term, while increasing the APR and discount rate, resulting in a higher yield.    We also put a significant amount of attention to the way we service our portfolio,” continued Marohn.  “We returned to a 121+ day charge off policy and now include Chapter 13 bankrupt accounts in that policy, which is more in line with industry standard.  As a result, the Company charge-off approximately $6.4 million dollars, resulting in a one-time $4.9 million charge to the provision for credit losses in the fourth quarter, which resulted in our fourth quarter and fiscal 2019 net loss.”  

“We have also made great strides in attacking our overall operating expenses.  We have exited the unsuccessful Texas and Virginia markets, as well as have consolidated several offices in a few markets with multiple branches,” Marohn went on to say,  “the acceleration of rent and severance expenses created a one-time increase of approximately $308,000 in operating expense for the  fourth quarter, but will result in future savings.  We will continue to evaluate every market based on profit and performance expectations.  We are also evaluating several market expansions and plan to add new offices where warranted.  We are grateful for, and proud of, all of our employees who worked so hard to get us to this point.  And we are excited about the potential for this new fiscal year.” In addition, during the fourth quarter, the Company expensed approximately $140,000 related to an attempt to purchase of a pool of loans.  

Marohn commented, “We are pleased and proud of the successful completion of our senior secured revolving credit facility, which closed on March 29. We are also happy to announce that the board recently authorized an $8 million stock repurchase program”.  

Net loss for the year ended March 31, 2019 was $3.6 million compared to a net loss of $1.1 million for the year ended March 31, 2018.  Diluted net loss per share was $0.46 for the year ended March 31, 2019 as compared to a $0.14 net loss for the year ended March 31, 2018. Revenue decreased 15.0% to $71.3 million for the year ended March 31, 2019 as compared to $83.9 million for the year ended March 31, 2018.


The following information was filed by Nicholas Financial Inc (NICK) on Wednesday, May 29, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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