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Nicholas Financial Reports 1st Quarter Results

Stocks in this article: NICK

CLEARWATER, Fla., Aug. 6, 2013 (GLOBE NEWSWIRE) -- Nicholas Financial, Inc. (Nasdaq:NICK) announced that for the three months ended June 30, 2013 net earnings increased 5% to $5,700,000 as compared to $5,407,000 for the three months ended June 30, 2012. Per share diluted net earnings increased 5% to $0.46 as compared to $0.44 for the three months ended June 30, 2012. Revenue was $20,476,000 for the three months ended June 30, 2013 as compared to $20,428,000 for the three months ended June 30, 2012.

"Our results for the three months ended June 30, 2013 were positively affected by a non-cash gain related to interest rate swap agreements (mark-to-market) and were adversely effected by an increase in operating expenses," stated Peter L. Vosotas, Chairman and CEO. During the June quarter we opened our fourth branch office in the South Florida market. "We will continue to develop additional markets and expect to open new branch locations during the remainder of our current fiscal year, which ends March 31, 2014."

The Company will hold its Annual Shareholders Meeting on December 16th at 12:00p.m. The meeting will be held at the Company's headquarters in Clearwater, Florida.

Nicholas Financial, Inc. is a publicly traded specialty consumer finance company. The company presently operates branch locations in both the Southeastern and the Midwestern states. 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, 2013. 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 June 30,
  2013 2012
Revenue:    
Interest and fee income on finance receivables $ 20,470 $ 20,418
Sales 6 10
  20,476 20,428
Expenses:    
Operating 7,997 7,135
Provision for credit losses 2,642 3,103
Interest expense 1,405 1,192
Change in fair value of interest rate swaps (833) 209
  11,211 11,639
     
Operating income before income taxes 9,265 8,789
Income tax expense 3,565 3,382
Net income $ 5,700 $ 5,407
     
Earnings per share:    
Basic $ 0.47 $ 0.45
Diluted $ 0.46 $ 0.44
     
Weighted average shares 12,065,000 11,940,000
     
Weighted average shares and assumed dilution 12,287,000 12,179,000
     
Condensed Consolidated Balance Sheets    
(Unaudited, In Thousands)    
     
  June 30, March 31,
  2013 2013
Cash $   3,659 $   2,798
Finance receivables, net 255,258 249,826
Other assets 11,175 11,211
     
Total assets $ 270,092 $ 263,835
     
Line of credit $ 126,022 $ 125,500
Other liabilities 12,593 11,370
     
Total liabilities 138,615 136,870
     
Shareholders' equity 131,477 126,965
     
Total liabilities and shareholders' equity $ 270,092 $ 263,835
   
  Three months ended  June 30,
Portfolio Summary 2013 2012
Average finance receivables, net of unearned interest (1) $285,637,997 $279,750,283
Average indebtedness (2) $125,880,390 $110,750,000
Interest and fee income on finance receivables (3)* $ 20,469,372 $ 20,417,957
Interest expense 1,404,906 1,192,140
Net interest and fee income on finance receivables* $ 19,064,466  $ 19,225,817
Weighted average contractual rate (4) 22.99% 23.81%
Average cost of borrowed funds (2) 4.46% 4.31%
Gross portfolio yield (5)* 28.66% 29.19%
Interest expense as a percentage of average finance receivables, net of unearned interest 1.97% 1.70%
Provision for credit losses as a percentage of average finance receivables, net of unearned interest*  3.70% 4.44%
Net portfolio yield (5)* 22.99% 23.05%
Marketing, salaries, employee benefits, depreciation and administrative expenses as a percentage of average finance receivables, net of unearned interest (6) 11.12% 10.10%
Pre-tax yield as a percentage of average finance receivables, net of unearned interest (7)* 11.87% 12.95%
Write-off to liquidation (8) 5.90% 4.93%
Net charge-off percentage (9) 5.15% 4.07%

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.

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