Febuary 2, 2017 Nicholas Financial Announces 3rd Quarter ResultsClearwater, Florida, - Februuary 2, 2017 - Nicholas Financial, Inc. (NASDAQ: NICK), announced that for the three months ended December 31, 2016, diluted earnings per share decreased 40% to $0.21 as compared to $0.35 for the three months ended December 31, 2015. Net earnings were $1.6 million and $2.7 million for the three months ended December 31, 2016 and 2015, respectively. Revenue decreased 3% to $22.0 million for the three months ended December 31, 2016 as compared to $22.8 million for the three months ended December 31, 2015. For the nine months ended December 31, 2016, per share diluted net earnings decreased 33% to $0.83 as compared to $1.24 for the nine months ended December 31, 2015. Net earnings were $6.5 million and $9.7 million for the nine months ended December 31, 2016 and 2015, respectively. Revenue remained relatively flat at $67.6 million for the nine months ended December 31, 2016 as compared to $67.5 million for the nine months ended December 31, 2015. Our net earnings for the three months ended December 31, 2016 were adversely affected primarily by an increase in the provision for credit losses due to higher charge-offs and past-due accounts along with a reduction in the gross portfolio yield. To a lesser extent, our results were favorably impacted by a decrease in operating expenses which was partially offset by a change in the interest rate swaps. Our net earnings for the nine months ended December 31, 2016 were adversely affected primarily by an increase in the provision for credit losses due to higher charge-offs and past-due accounts along with a reduction in the gross portfolio yield. Conversely, our results were favorably impacted by a decrease in operating expenses. “During our third quarter, competition for new loan originations remained high with yields that continued to trend lower. We do not expect to see any material changes during our fourth quarter ending March 31, 2017,” stated Ralph T. Finkenbrink, the Company’s President and CEO. As previously disclosed, on October 1, 2016; the Company moved all loan-servicing operations from branch locations to a centralized location within its Corporate Headquarters in Clearwater, FL. The Company’s continued portfolio weakness was exacerbated by greater than anticipated difficulties in implementing the centralized collection model. In early January 2017, the Company elected to move most of its servicing and collection activity back to 31 branch offices, or 48% of its branch network. Please refer to the Current Report on Form 8-K filed by the Company on January 11, 2017 for further details. We continue to evaluate the various markets in which we operate; however, we do not expect any significant changes to the number of branches or other perations during our fourth quarter ending March 31, 2017. The Company continues to evaluate various strategies in an effort to improve its portfolio performance and reduce its operating expenses, although no assurances can be given. Nicholas Financial, Inc. is one of the largest
publicly-traded specialty consumer finance companies in North America.
The Company operates branch locations in both Southeastern and Midwestern
U.S. states. The Company has approximately 7,779,000 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. |