Nicholas Financial, Inc.
Press Release

 

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FOR IMMEDIATE RELEASE

Contact: Ralph Finkenbrink
Nicholas Financial, Inc.
Ph # - (727) 726-0763
Fax # - (727) 726-2140
E-Mail - rfinkenbrink@nicfn

Investor Relations
Michael Marika
Ph # - (727) 726-0763
Fax # - (727) 726-2140
E-Mail - mmarika@nicfn.com

Stock Symbol:
         (NASDAQ): NICK.

Web Site -
         www.nicholasfinancial.com

Nicholas Financial Reports Results
For The 4th Quarter & Year
Ended March 31, 2008


 

 

Clearwater, Florida, - May 4, 2006 - Nicholas Financial, Inc. (Nasdaq: NICK), announced that net income decreased 32% to $2,055,000 for the three months ended March 31, 2008 as compared to $3,012,000 for the three months ended March 31, 2007. Diluted earnings per share decreased 31% to $0.20 for the three months ended March 31, 2008 as compared to $0.29 for the three months ended March 31, 2007. Revenue increased 6% to $12,721,000 for the three months ended March 31, 2008 as compared to $12,044,000 for the three months ended March 31, 2007.

Net income decreased 16% to $9,672,000 for the year ended March 31, 2008 as compared to $11,580,000 for the year ended March 31, 2007. Diluted earnings per share decreased 18% to $0.93 for the year ended March 31, 2008 as compared to $1.13 for the year ended March 31, 2007. Revenue increased 7% to $50,083,000 for the year ended March 31, 2008 as compared to $46,709,000 for the year ended March 31, 2007. The Company has reported revenue increases for 18 years in a row.

According to Peter L. Vosotas, Founder and CEO, “While we are not pleased with our performance for the year, we recognize the challenging credit cycle and accompanying weakness in the economy. The Company is pleased to have increased revenue 7% for the year and increased its Net Worth 13% from $69.8 million to $78.6 million or $7.70 per share.” “The Company’s strategy for next year is to continue evaluating potential new markets, increase its market share in existing markets, and determine if the profitability metrics of certain branch locations are meeting Company standards.”

Founded in 1985, with assets of $189,838,000 as of March 31, 2008, Nicholas Financial, Inc. is one of the largest publicly traded specialty consumer finance companies based in the Southeast. The Company presently operates out of 47 branch locations in both the Southeast and the Mid-West States. The Company has approximately 10,200,000 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.

Download Adobe Acrobat version of this press release.

 


 

 

 

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that involve risks and uncertainties including competitive factors, the management of growth, 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, 2007. 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 and forward looking statement or cautionary statement.

 

NICHOLAS FINANCIAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, Dollars in Thousands, Except Per Share Amounts)


 

 

Three Months Ended
March 31,

Year Ended
March 31,

2008

2007

2008

2007

Revenue:
    Interest income on
       finance receivables

12,707

12,015

50,008

46,590

    Sales

            14

            29

            75

           119

       12,721

       12,044

      50,083

      46,709

Expenses:
   Operating

5,406

4,874

20,389

18,745

   Provision for credit losses

2,537

834

7,818

3,690

   Interest expense

       1,467

       1,461

       6,310

       5,536

       9,410

       7,169

      34,517

      27,971

         
Operating Income before
    income taxes

3,311

4,875

15,566

18,738

Income tax expense

       1,256

       1,863

        5,894

        7,158

    Net income

   $   2,055
=======

   $   3,012
=======

   $ 9,672
=======

   $ 11,580
=======

..
Earnings per share:
    Basic

    $    0.20
=======

    $    0.30
=======

     $   0.97
=======

     $   1.17
=======

    Diluted

    $    0.20
=======

    $    0.29
=======

     $   0.94
=======

     $   1.13
=======

..
Weighted average shares

10,058,883
=======

9,962,881
=======

10,002,505
=======

9,929,944
=======

..
Weighted average shares
    and assumed dilution


10,306,098
=======


10,327,215
=======

10,298,679
=======

10,286,786
=======

         

 

NICHOLAS FINANCIAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, Dollars in Thousands)


 

 

March 31,

March 31,

2008     

2007     

Cash

$         2,298

$         1,499

Finance receivables, net

179,043

164,365

Other Assets

        8,497

        7,045

    Total Assets

$     189,838
=======

$     172,909
=======

Line of credit

$     99,937

$     94,012

Other liabilities

      11,325

      9,063


    Total Liabilities

111,262

103,075

..
Shareholder's Equity

      78,576

      69,834

..
Total Liabilities &
    Shareholders' equity


    $      189,838
=======


    $      172,909
=======

 


 

 

Portfolio Summary

         Three Months Ended
         March
31

         Year Ended
         March
31

         2008

         2007

         2008

         2007

Average finance receivables, net of unearned interest (1)


$ 195,192
,013
============


$ 181,120
,319
============

$   191,012,129
============

$   172,508,750
============


Average indebtedness (2)

 
$   99,967
,626
============

 
$   92,420
,346
============

 $    97,124,666
============

 $    87,392,132
============


Finance revenue (3)

$   12,705,855

$   12,014,710

$    50,007,510

$    46,590,436


Interest expense
            1,467,837             1,461,058            6,310,465            5,535,599

Net finance revenue


$   11,238
,018
============


$   10,553
,652
============

$   43,697,045
============

$   41,054,837
============


Weighted average contractual rate (4)


24.50%
============


24.10%
============

24.32%
============

23.99%
============


Average Cost of Borrowed Funds (2)


5.87%
============


6.32%
============

6.50%
============

6.33%
============


Gross Portfolio Yield (5)

26.04%

26.53%


26.18%
 


27.01%
 

Interest expense as a percentage of average finance receivables, net of unearned interest

3.01%

3.23%

3.30%

3.21%


Provision for credit losses as a percentage of average finance receivables, net of unearned interest
               5.20%                1.84%                4.09%                2.14%

Net portfolio yield (5)

17.83%

21.46%

18.79%

21.66%


Operating expenses as a percentage of average finance receivables, net of unearned interest (6)
               11.01%                10.69%               10.57%               10.77%

Pre-tax yield as a percentage of average finance receivables, net of unearned interest (7)




6.82%
============




10.77%
============

8.22%
============

10.89%
============


Write-off to liquidation (8)


9.96%


6.19%


9.08%


6.72%


Net charge-off percentage (9)
 

8.98%
 

5.82%
 

8.24%
 

6.30%
 

Note: All three key performance indicators expressed as percentages have been annualized

(1)  Average finance receivables, net of unearned interest, represents the average of gross finance receivables, less unearned interest throughout the period.

(2)  Average indebtedness represents the average outstanding borrowings under the Line and notes payable-related party.  Average cost of borrowed funds represents interest expense as a percentage of average indebtedness. 

(3)  Finance revenue does not include revenue generated by Nicholas Data Services, Inc. (NDS) the wholly-owned software subsidiary of Nicholas Financial, Inc.

(4)  Weighted average contractual rate represents the weighted average annual percentage rate (APR) of all Contracts purchased and direct loans originated during the period.    

(5)  Gross portfolio yield represents finance revenues as a percentage of average finance receivables, net of unearned interest. Net portfolio yield represents finance revenue minus (a) interest expense and (b) the provision for credit losses as a percentage of average finance receivables, net of unearned interest. 

(6)  Operating expenses represent total expenses, less interest expense, the provision for credit losses and operating costs associated with NDS.

(7)  Pre-tax yield represents net portfolio yield minus operating expenses as a percentage of average finance receivables, net of unearned interest.

(8)  Write-off to liquidation percentage is defined as net charge-offs divided by liquidation. Liquidation is defined as beginning receivable balance plus current period purchases minus voids and refinances minus ending receivable balance.

(9)  Net charge-off percentage represents net charge-offs divided by average finance receivables, net of unearned interest,
              outstanding during the period.

 


 

 

The following tables present certain information regarding delinquency rates experienced by the Company with respect to Contracts and under its direct loan program:
 

 

At March 31,

2008

2007

Contracts    
Gross Balance Outstanding

$ 269,985,960

$ 247,002,051

         

Delinquencies
       
 
30 to 59 days

$6,747,067

2.50%

$4,072,821

1.65%

60 to 89 days

1,798,287

0.66%

921,097

0.37%

90 + days

    831,647

      0.31%

    506,433

      0.21%

         
Total Delinquencies

$9,377,001
========

3.47%
========

$5,500,351
========

2.23%
========

         
Direct Loans        
Gross Balance Outstanding

$ 10,161,920
=========

$ 9,990,060
=========

..
Delinquencies        
         
30 to 59 days

$181,982

1.79%

$65,982

0.66%

60 to 89 days

51,974

0.51%

12,024

0.12%

90 + days

      58,065

      0.57%

      21,476

      0.22%

         
Total Delinquencies

$291,283
========

2.87%
========

$99,482
========

1.00%
========

 


 

 

The following table presents selected information on Contracts purchased by the Company, net of unearned interest:

Three Months Ended
March 31

Year Ended
March 31

Contracts

2008

2007

2008

2007

Purchases

$35,030,604

$34,358,039

$118,529,430

$120,192,997

Weighted APR

24.47%

24.03%

24.23%

23.90%

Avg. Discount

8.66%

8.42%

8.32%

8.45%

Avg.Term (months)

48

47

48

46

Average Loan

$  9,187

$  9,037

$  9,315

$  9,063

# of Contracts    3,813    3,802         12,725         13,262

 



Contact Information

Telephone
727-726-0763
FAX
727-726-2140
Postal address
2454 McMullen-Booth Rd., Bldg. C, Clearwater, FL 33759
Electronic mail
Nicholas Employee E-Mail Directory
Investor Information: mmarika@nicfn.com
Webmaster: mmarika@nicfn.com

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