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

Exhibit 99.1

Nicholas Financial Reports

1st Quarter Fiscal Year 2022 Results

July 30, 2021 – Clearwater, Florida - Nicholas Financial, Inc. (NASDAQ: NICK) announced net income for the three months ended June 30, 2021 of $1.7 million compared to $1.4 million for the three months ended June 30, 2020.  Diluted net income per share was $0.22 for the three months ended June 30, 2021 as compared to $0.18 for the three months ended June 30, 2020. Revenue decreased 11.0% to $12.6 million for the three months ended June 30, 2021 as compared to $14.2 million for the three months ended June 30, 2020. The Company reported income before income taxes for the three months ended June 30, 2021 of $2.3 million compared to $1.9 million for the three months ended June 30, 2020.  The Company recorded an income tax expense of approximately $0.6 million during the three months ended June 30, 2021 as compared to $0.4 million during the three months ended June 30, 2020.

During the quarter ended June 30, 2021, the Company originated $26.0 million in finance receivables, collected $30.0 million in principal payments, reduced debt by $13.4 million and cash by $9.5 million.

“The more exciting news this quarter is the realization of year-over-year increases in both new indirect contract purchases and direct loan originations,” stated Doug Marohn, President and CEO of Nicholas Financial, Inc.  “This has helped level off the liquidation rate of our portfolio.  We have not returned to a net portfolio growth situation quite yet, but the rate of shrinkage has slowed.”

“Helping to fuel those year-over-year increases in production is our continued focus on the Direct Loan product as well as the commitment to expanding our branch network.  The Direct Loan product continues to gain momentum and is becoming a larger portion of our portfolio every month.  In terms of expansion, we have reentered the Houston, Texas market and expect to open the branch in the 2nd Quarter of FY 2022. We are also actively working the Dallas, San Antonio and Austin markets in Texas and plan to open offices there this fiscal year. Phoenix, Arizona is currently being developed, as well,” continued Marohn.

“The elevated operational expense is attributed to our investments in our workforce and our network,” concluded Marohn.  “As a result of our improved financial results, we are able to reinvest in technology, training, personnel development as well the expansion of our branch network. These investments will yield positive results for years to come.”

The 2021 Annual General Meeting of Shareholders of Nicholas Financial, Inc. will be held at the Company’s Central Business Operations hub, located at 3600 Arco Corporate Drive, Charlotte, North Carolina 28273, Suite 210, on Thursday, September 2, 2021, at 11:00 a.m. EST.  The Company will simultaneously hold a virtual shareholder meeting. The URL Path for the virtual meeting is https://agm.issuerdirect.com/nick.