am pleased to report
that our Company once again achieved outstanding
financial results by recording its 16th
consecutive year of record revenues and profits, during fiscal 2006.
Last year marked our 21st year of business and
our 19thyear as a publicly
traded company. Several notable
were achieved by our Company during the past year.
L. Vosotas, Chairman, CEO & President
Ralph T. Finkenbrink, CFO & Sr. Vice President (right)
Several notable financial milestones were
achieved by our Company during the past year. Net income for the year ended
March 31, 2006 increased 31% to $10,559,000 as compared to $8,080,000 for the
year ended March 31, 2005. Diluted Earnings per share increased by 26% to $ 1.01
as compared to $0.80 last year. Revenue for the
year increased 30% to $42,677,000 as compared to $32,832,000 last year.
Shareholder’s Equity grew 25% from $46,758,000 to $58,249,000. In addition, the
Company announced record income and revenues in each quarter during the past
In keeping with the Company’s expansion strategy,
Nicholas added seven new locations to our branch office network during the past
fiscal year, bringing the total to 42. We built our fourth branch office in
Atlanta, Georgia, our second office in Raleigh, North Carolina, our first office
in Indianapolis, Indiana and our first office in Baltimore, Maryland. We also
added a branch in Lexington, Kentucky a branch in Louisville, Kentucky and a
branch in Miami, Florida. The company added two more branch offices in the first
quarter of fiscal 2007, including a second branch in Baltimore, Maryland
and a branch in New Port Richey,
Florida. With the
of these new branches that opened in May
2006, the Company now has 44 branches operating in 10 states.
On May 12th, 2005 the
Company announced a three for two stock
split to shareholders of record as of June 7, 2005. The stock split was payable
on June 17, 2005, in the form of a 50% stock dividend.
Sotirios A. Kakalis,
Director of Loss Recovery
Chad W. Steinorth, Vice President - Finance (right)
For many years I have made the same statement
regarding our accomplishments, “Our consistent financial performance hasn’t
happened by accident. It is the result of many people working very hard over a
long period of time. The automobiles of our employees are usually the first to
arrive in the parking lot each morning and invariably the last to drive away at
night.” To the credit of our employees this statement rings as true today as
when it was first written. We, like all companies, have a challenge to find
good, hardworking, and qualified people. When we do, we try our best to keep
those who work hard and produce results. We reward our employees with excellent
benefits, including performance based bonuses and strong career opportunities.
As a result, we have very low employee turnover. Our ability to mold and retain
a veteran team is one of the primary reasons for our success. The majority of
our senior managers, accounting staff and data processing staff have been
with the Company since its inception in the late
During the past year we
maintained our close
relationship with our current lenders, as
we continued to address our long-term financing needs. In February of this year
we announced an increase in our revolving credit line from $85 million to $100
million. Our creditors, led by Bank of America, include First Tennessee Bank,
Hibernia National Bank and the Bank of Scotland.
Matthew J. Foget,
Vice President - Marketing
Doug W. Marohn, Vice President - Br Operations (right)
We look forward with optimism toward the coming
year. Any company that can say, “Our potential customer base is over $300
billion dollars a year”, should be excited about its business prospects. Our
intention is to continue our strategy of steady controlled growth by increasing
our existing branch loan portfolios and building new branch offices. We intend
to continue growing our company organically. However we will stay alert to
possible acquisition opportunities that may come to our attention.
Overall, we are very pleased with what Nicholas
Financial has accomplished during the past year in spite of the distress caused
by hurricanes here in Florida. Fortunately, none of our branch locations
suffered the extreme catastrophic
devastation experienced in the Alabama, Mississippi and Louisana gulf region.
These climatic events however, have prompted our Company to reexamine and retool
its disaster preparedness facilities. We have
expended considerable monies this past year rebuilding our
architecture as well as
establishing a redundant computer disaster
avoidance facility employing Verizon
Communications to provide a private managed network allowing more security and
flexibility. With the threat of hurricanes in this part of the country we would
be foolish not to have made these important investments.
Laura S. Botto,
Director of Human Resources
Michael J. Marika, Chief Information Officer (right)
We are very proud of our employees, whose dedication,
talent and loyalty have made Nicholas an
important force in automobile financing. We are grateful for their ongoing
efforts and for the support of our customers, bankers, vendors and shareholders.
We remain determined to increase the value of our publicly traded stock. We are
convinced that our shareholders will be rewarded if we continue to build the net
worth of our Company each year.
To all of you who have invested in Nicholas, we
wish to thank you for having continued faith in our Company. On behalf of our
Board of Directors and our employees, we thank you for the confidence that you
have entrusted in us.
Peter L. Vosotas
Chairman, CEO & President