Nicholas Financial Inc (NICK) SEC Filing 10-Q Quarterly report for the period ending Tuesday, December 31, 2019

Exhibit 99.1

Nicholas Financial Reports

3rd Quarter Fiscal Year 2020 Results

February 6, 2020 – Clearwater, Florida - Nicholas Financial, Inc. (NASDAQ: NICK) announced net income for the three months ended December 31, 2019 of $0.3 million compared to net loss of $0.9 million for the three months ended December 31, 2018.  Diluted net income per share was $0.04 for the three months ended December 31, 2019 as compared to net loss per share of $0.12 for the three months ended December 31, 2018. Revenue decreased 10.6% to $15.0 million for the three months ended December 31, 2019 as compared to $16.7 million for the three months ended December 31, 2018. The Company reported income before income taxes for the three months ended December 31, 2019 of $0.5 million compared to net loss of $1.3 million for the three months ended December 31, 2018.   The Company recorded an income tax expense of approximately $0.2 million during the three months ended December 31, 2019 compared to an income tax benefit of $0.4 million during the three months ended December 31, 2018.  

Net income for the nine months ended December 31, 2019 of $1.2 million compared to $1.1 million for the nine months ended December 31, 2018.  Diluted net income per share was $0.15 for the nine months ended December 31, 2019 as compared to $0.14 for the nine months ended December 31, 2018. Revenue decreased 14.0% to $47.2 million for the nine months ended December 31, 2019 as compared to $54.9 million for the nine months ended December 31, 2018. The Company reported income before income taxes for the nine months ended December 31, 2019 of $1.7 million compared $1.4 million for the nine months ended December 31, 2018.   The Company recorded an income tax expense of approximately $0.5 million during the nine months ended December 31, 2019 compared to $0.3 million during the nine months ended December 31, 2018.  

“We are very pleased with the progress we have been making overall, and particularly pleased with the progress in our 3^rd Quarter of Fiscal Year 2020.  On both new indirect contract purchases and direct loan volume we have outpaced year over year results for the 3^rd Quarter and Year to Date,” Said Doug Marohn, CEO and president of Nicholas Financial, Inc.  “Our targeted efforts to improve same store sales, rollout our Direct Loan product to more states, continue new market expansion and be open to other strategic partnerships is yielding positive results.”

“In the 3rd Quarter we saw more than a 15% increase on Indirect purchases and nearly 50% increase on the Direct Loan production,” Marohn continued. “We also added an additional $1.1 million by way of a bulk portfolio purchase from another company in our space.  Our expansion efforts are underway in Las Vegas, Nevada in addition to the other areas previously identified.  We are in the process of initiating expansion in Salt Lake City, Utah; Boise, Idaho; and Des Moines, Iowa; just to name a few.”