Nicholas Financial, Inc.
Press Release

 

Home

Latest NFI News

Business Media

Analyst Reports

Press Rel. Library

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 1st Quarter Ended June 30,2008


 

 

Clearwater, Florida, - July 31, 2008 - Nicholas Financial, Inc. (NASDAQ: NICK), announced that net income decreased 44% to $1,558,000 for the three months ended June 30, 2008 as compared to $2,784,000 for the three months ended June 30, 2007. Diluted earnings per share decreased 44% to $0.15 for the three months ended June 30, 2008 as compared to $0.27 for the three months ended June 30, 2007. Revenue increased 8% to $13,119,000 for the three months ended June 30, 2008 as compared to $12,170,000 for the three months ended June 30, 2007.

According to Peter L. Vosotas, Founder and CEO, the Company’s performance during the first quarter reflects a continuation of economic weakness first recognized by the Company approximately one year ago. Higher gasoline prices, food prices and other inflationary pressures associated with the rising price of oil have significantly contributed to additional economic weakness, which was first felt by the downturn in the housing market. The Company’s strategy 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 $195,512,000 as of June 30, 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, 2008. 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 any 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 June 30

2008      

2007    

Revenue:
     Interest income on finance receivables

$       13,104

$       12,148

    Sales

           15

           22

13,119

12,170

Expenses:
    Operating 5.816 4.885
    Provision for credit losses 3,435 1,197
    Interest expense         1,409         1,589
10,660 7,671
     
Operating income before income taxes 2,459 4,499
Income tax expense          901        1,715
    Net income $     1,558 ======= $     2,784 =======
Earnings per share:
    Basic $         .15
=======
$         .28
=======
    Diluted $         .15
=======
$         .27
=======

Weighted average shares

10,187,000
=======
10,000,000
=======
     
Weighted average shares
    and assumed dilution

10,393,000
=======
10,352,000
=======

 

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


 

 

June 30,

March 31,

2008     

2008    

Cash

$       2,139

$       2,298

Finance receivables, net

185,451

179,043

Other Assets

       7,922

       8,497

    Total Assets

$   195,512
=======

$   189,838
=======

Line of credit

 103,775

   99,937

Other liabilities

     10,079

     11,325

    Total liabilities

113,854

111,262

..
Shareholder's equity

     81,658

     78,576

Total liabilities &
    shareholders' equity


    $   195,512
=======


    $   189,838
=======

 


 

 

Portfolio Summary

Three Months Ended June 30

2008      

2007    

Average finance receivables, net of unearned interest (1)
 

$   203,316,133
============

$   186,493,399
============

Average indebtedness (2)
 

$   101,856,230
============

$     94,006,134
============

Finance revenue (3)

$     13,103,966

$     12,148,489

Interest expense           1,409,336           1,588,608
Net finance revenue

$     11,694,630
============

$     10,559,881
============

Weighted average contractual rate (4)

24.28%
============

24.17%
============

Average Cost of Borrowed Funds (2)

5.53%
============

6.76%
============

Gross Portfolio Yield (5)

25.78%
 

26.06%
 

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

2.77%
 

3.41%
 

Provision for credit losses as a percentage of average finance receivables, net of unearned interest                6.76%                2.57%

Net portfolio yield (5)

16.25%

20.08%


Operating expenses as a percentage of average finance receivables, net of unearned interest (6)
              11.04%               10.36%

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

5.21%
============

9.72%
============


Write-off to liquidation (8)


11.24%


7.20%


Net charge-off percentage (9)


9.39%


6.59%

Note: All three month 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 June 30,

2008

2007

Contracts    
Gross Balance Outstanding

$ 282,828,447
===========

$ 250,450,750
===========

         
Delinquencies        
 
30 to 59 days

$7,066,773

2.50%

$5,005,607

2.00%

60 to 89 days

2,734,258

0.97%

1,857,560

0.74%

90 + days

  1,106,775

      0.39%

    615,176

      0.25%

         
Total Delinquencies

$10,907,806
========

3.86%
======

$7,478,343
========

2.99%
======

         
Direct Loans        
Gross Balance Outstanding

$ 9,275,896

$ 10,315,193

..
Delinquencies        
         
30 to 59 days

$123,548

1.33%

$98,820

0.96%

60 to 89 days

61,820

0.67%

65,710

0.64%

90 + days

      44,009

      0.47%

      41,762

      0.40%

         
Total Delinquencies

$229,377
========

2.47%
======

$206,292
========

2.00%
======

 


 

 

The amounts shown in the  table below represent the amount of Contracts purchased, net of unearned interest.

Three Months Ended June 30

Contracts

2008      

2007    

Purchases

$   33,324,451

$   27,967,503

Weighted APR

24.19%

24.07%

Average Discount

8.87%

8.21%

Average Term (months)

49

47

Average Loan

$  9,554

$  9,298

Number of Contracts                                     3,488                 3,008

 



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

 [ Home | Company Profile | President's Message | Feedback | Search ]

Send mail to mmarika@nicfn.com with questions or comments about this web site.
Last modified: 07
/31/08  10:30 am