This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Nicholas Financial Reports 4th Quarter Results & Quarterly Dividend

Stocks in this article: NICK

CLEARWATER, Fla., May 9, 2013 (GLOBE NEWSWIRE) -- Nicholas Financial, Inc. (Nasdaq:NICK) announced that for the three months ended March 31, 2013, net earnings decreased 20% to $4,865,000 as compared to $6,045,000 for the three months ended March 31, 2012. Per share diluted net earnings decreased 20% to $0.40 as compared to $0.50 for the three months ended March 31, 2012. Revenue increased 3% to $17,688,000 for the three months ended March 31, 2013 as compared to $17,182,000 for the three months ended March 31, 2012.

For the year ended March 31, 2013, net earnings decreased 10% to $19,966,000 as compared to $22,230,000 for the year ended March 31, 2012. Per share diluted net earnings decreased 12% to $1.63 as compared to $1.85 for the year ended March 31, 2012. Revenue increased 4% to $70,628,000 for the year ended March 31, 2013 as compared to $68,167,000 for the year ended March 31, 2012.

"During the three months ended March 31, 2013, our results were affected by an increase in the net charge-off rate, an increase in operating expenses and an increase in interest expense," stated Peter L. Vosotas, Chairman and CEO. "Subject to market conditions, we intend to continue expanding our branch network during the coming year."

On May 7 th the Board of Directors declared a cash dividend of $0.12 per share on its common stock, to be paid on June 28, 2013 to shareholders of record as of June 21, 2013. Subject to market conditions and profitability targets, the Company anticipates it will continue to declare quarterly cash dividends in the future, however no assurances can be given.

Nicholas Financial, Inc. is one of the largest publicly traded specialty consumer finance companies based in the Southeastern states. The Company presently operates 65 branch locations in both the Southeastern and the Midwestern states. The Company has approximately 12,200,000 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 .

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that involve risks and uncertainties including general economic conditions, access to bank financing, 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, 2012. 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 Share and Per Share Amounts)
         
  Three months ended March 31, Year ended March 31,
  2013 2012 2013 2012
Revenue:        
Interest and fee income on finance receivables $17,679 $17,173 $70,590 $68,123
Sales 9 9 38 44
  17,688 17,182 70,628 68,167
Expenses:        
Operating 7,661 6,818 29,114 26,928
Dividend tax 73 60 1,492 180
Provision for credit losses 732 (707) 1,869 5
Interest expense 1,403 1,189 5,121 4,892
Change in fair value of interest rate swaps (141) --  505 --
  9,728 7,360 38,101 32,005
         
Operating income before income taxes 7,960 9,822 32,527 36,162
Income tax expense 3,095 3,777 12,561 13,932
Net income $4,865 $6,045 $19,966 $22,230
         
Earnings per share:        
Basic $0.40 $0.51 $1.67 $1.89
Diluted $0.40 $0.50 $1.63 $1.85
         
Weighted average shares 12,024,000 11,791,000 11,977,000 11,747,000
         
Weighted average shares and assumed dilution 12,267,000 12,089,000 12,218,000 12,033,000
     
     
Condensed Consolidated Balance Sheets    
(Unaudited, In Thousands)    
     
  March 31, March 31,
  2013 2012
Cash $2,798 $2,803
Finance receivables, net 250,961 242,349
Other assets 10,777 12,084
     
Total assets $264,536 $257,236
     
Line of credit $125,500 $112,000
Other liabilities 11,370 9,297
     
Total liabilities 136,870 121,297
     
Shareholders' equity 127,666 135,939
     
Total liabilities and shareholders' equity $264,536 $257,236
         
         
Portfolio Summary Three months ended March 31, Year ended March 31,
  2013 2012 2013 2012
Average finance receivables, net of unearned interest (1) $279,908,688 $275,276,658 $280,909,385 $272,979,496
Average indebtedness (2) $126,750,000 $112,750,000 115,157,810 $115,688,980
Interest and fee income on finance receivables (3) $17,679,561 $17,172,359 $70,628.20 $68,122,532
Interest expense 1,403,441 1,189,117 5,120,827 4,891,854
Net interest and fee income on finance receivables $16,276,120 $15,983,242 $65,507,368 $63,230,678
Weighted average contractual rate (4) 23.16% 24.06% 23.43% 23.93%
Average cost of borrowed funds (2) 4.43% 4.22% 4.45% 4.23%
Gross portfolio yield (5) 25.26% 24.95% 25.14% 24.96%
         
Interest expense as a percentage of average finance receivables, net of unearned interest 2.01% 1.73% 1.82% 1.79%
         
Provision for credit losses as a percentage of average finance receivables, net of unearned interest  1.05% (1.03)% 0.67% 0.00%
Net portfolio yield (5) 22.20% 24.25% 22.65% 23.17%
         
Marketing, salaries, employee benefits, depreciation and administrative expenses as a percentage of average finance receivables, net of unearned interest (6) 10.98% 9.91% 10.81% 9.85%
         
Pre-tax yield as a percentage of average finance receivables, net of unearned interest (7) 11.22% 14.34% 11.84% 13.32%
         
Write-off to liquidation (8) 6.78% 4.86% 6.81% 5.66%
         
Net charge-off percentage (9) 6.30% 4.29% 5.88% 4.59%
         
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. Average cost of borrowed funds represents interest expense as a percentage of average indebtedness.
 
(3) Interest and fee income on finance receivables 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 interest and fee income on finance receivables as a percentage of average finance receivables, net of unearned interest. Net portfolio yield represents interest and fee income on finance receivables minus (a) interest expense and (b) the provision for credit losses as a percentage of average finance receivables, net of unearned interest. 
 
(6) Administrative expenses included in the calculation above are net of administrative expenses associated with NDS which approximated $48,000 and $53,000 for the three-month periods ended March 31, 2013 and 2012, and $220,000 for both years ended March 31, 2013 and 2012, respectively. The numerators for the three months ended March 31, 2013 and 2012 and the years ended March 31, 2013 and 2012 include a tax associated with cash dividends. In December 2012, this amount was substantial due to a $2.00 special cash dividend. Absent the dividend tax, the percentages would have been 10.88% and 9.83% for the three months ended March 31, 2013 and 2012 and 10.28% and 9.78% for the years ended March 31, 2013 and 2012, respectively.
 
(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 the delinquency rates experienced by the Company with respect to Contracts and under its direct loan program: 

  Delinquencies
Contracts Gross Balance Outstanding 31 – 60 days 61 – 90 days Over 90 Total  
March 31, 2013 $ 386,940,093 $10,557,122 $ 2,723,456 $1,373,507 $ 14,654,085  
    2.73% 0.70% 0.35% 3.78%  
March 31, 2012 $ 382,766,667 $ 8,994,485 $ 1,889,643 $  663,521 $ 11,547,649  
    2.35% 0.49% 0.17% 3.01%  
             
Direct Loans Gross Balance Outstanding 31 – 60 days 61 – 90 days Over 90 Total  
March 31, 2013 $ 8,781,637 $ 72,364 $ 21,509 $ 13,790 $ 107,663  
    0.82% 0.25% 0.16% 1.23%  
March 31, 2012 $ 6,221,688 $ 48,899 $   14,257 $   4,933 $   68,089  
    0.79% 0.23% 0.07% 1.09%  
             
             

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 2013 2012 2013 2012
Purchases $43,847,280 $42,289,228 $151,740,809 $146,321,687
Weighted APR 23.06% 23.99% 23.28% 23.82%
Average discount 7.73% 8.50% 7.81% 8.47%
Weighted average term (months) 51 48 50 49
Average loan $    10,341 $ 9,742 $ 10,260 $ 9,873
Number of contracts 4,240 4,341 14,789 14,820
CONTACT: Ralph Finkenbrink
         Sr. Vice President, CFO
         Ph # - 727-726-0763
         www.nicholasfinancial.com

Nicholas Financial, Inc. Logo

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs