July 28, 2016
Nicholas Financial Reports 1st Quarter Results
Clearwater, Florida, - July 28, 2016 - Nicholas Financial, Inc. (NASDAQ: NICK), announced that for the three months ended June 30, 2016, diluted earnings per share decreased 21% to $0.37 as compared to $0.47 for the three months ended June 30, 2015. Net earnings were $2,903,000 and $3,670,000 for the three months ended June 30, 2016 and 2015, respectively. Revenue increased 4% to $22,915,000 for the three months ended June 30, 2016 as compared to $22,025,000 for the three months ended June 30, 2015.
Our net earnings for the three months ended June 30, 2016 were adversely affected primarily by an increase in the provision for credit losses due to higher charge-offs and a reduction in the gross portfolio yield due to a decrease in the weighted average APR of purchases. Our net earnings were positively affected by a reduction in operating expenses as a percentage of average net receivables from 10.92% to 10.40%, for the three months ended June 30, 2015 and 2016, respectively.
“During our first quarter, new loan originations were below Company expectations. We experienced a greater number of potential loans, which did not translate into acquired loans because they did not meet the Company’s risk pricing criteria. The market continues to be highly competitive and we have seen some large competitors reduce their originations as a result of tightening underwriting guidelines; however, other large competitors have increased their appetite for new loan acquisitions.” stated Ralph T. Finkenbrink, the Company’s President and CEO.
Nicholas Financial, Inc. is one of the largest publicly traded specialty
consumer finance companies in North America. The Company operates branch locations
in both the Southeastern and the Midwestern states. The Company has approximately
7,753,000 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.