Nicholas Financial Posts Record Q4 and Year-End Results Income
2 May 2000
Nicholas Financial Posts Record 4th Quarter and Year-End Results Income for the Year up 61% -- Fourth Quarter Income up 29%
CLEARWATER, Fla., May 2 Nicholas Financial, Inc.
(Nasdaq: NICK) today announced record revenues and earnings for the fourth
quarter and for fiscal year ended March 31, 2000.
For the Quarter ended March 31, 2000:
Revenue increased 38% to $4,222,000 compared to $3,050,000 for the fourth
quarter a year ago. Net Income increased 29% to $769,177 compared to $597,327
in the fourth quarter a year ago. Basic earnings per share rose to $0.33
compared to $0.25 in the fourth quarter a year ago. Fully diluted earnings
per share rose to $0.30 compared to $0.23 in the fourth quarter a year ago.
For the Year ended March 31, 2000:
Revenue increased 35% to $14,075,000 compared to $10,419,000 for the year.
Net income increased 61% to $2,577,568 compared to $1,602,356 a year ago.
Basic earnings per share rose to $1.10 compared to $0.68 a year ago. Fully
diluted earnings per share rose to $1.01 compared to $0.65 a year ago.
Peter Vosotas, the company's founder, Chairman and CEO, stated, "We are
extremely pleased with the substantial gains that we made this year and over
the two previous years. It is a tribute to the motivation and dedication of
our employees. Over the past 15 years we have built a solid company that puts
both its customers and employees first. As a result, our company has
prospered and should continue to do so in the foreseeable future." Vosotas
added, "Several factors have contributed to the Company's excellent financial
performance during the past year. We have offset the recent rise in interest
rates to some extent, by purchasing long-term fixed-rate interest instruments.
Secondly, the Company's write-offs were significantly below our estimates for
the year. Third, the Company's strategy to expand into Georgia two years ago
and North Carolina last year has paid off. Our three Georgia branches are all
now profitable and our Charlotte, North Carolina, branch office is growing
rapidly. We intend to open a new branch office in Raleigh, North Carolina,
shortly, followed by additional offices in Georgia and North Carolina.
Finally, our company, because of its longevity and success in the marketplace,
has been able to hire and retain excellent personnel at all levels."
Nicholas Financial, Inc. is a specialized Finance Company that provides
funding for pre-owned automobiles and light trucks. The Company acquires and
services non-prime installment sales contracts through a network of automobile
dealerships through its branch network in Florida, Georgia, and North
Carolina. In addition, the company provides consumer loans primarily to its
customer base. Its software subsidiary, Nicholas Data Services, Inc.,
designs, develops and supports all the systems related to the Finance Company
and sells proprietary accounting software to small businesses.
Nicholas Financial, Inc.
Consolidated Income Statements
(Unaudited, Dollars in Thousands, Except Per Share Amounts)
Three Months Ended Year Ended
March 31, March 31,
2000 1999 2000 1999
Revenue:
Finance charge income $4,104 $2,893 $13,557 $9,923
Other income 118 157 518 496
4,222 3,050 14,075 10,419
Costs and expenses:
Operating expenses 1,698 1,183 5,803 4,514
Provision for losses 282 342 1,070 941
Interest expense 744 560 2,771 2,359
2,724 2,085 9,644 7,814
Income before
income taxes 1,498 965 4,431 2,605
Income tax provision 729 368 1,853 1,003
Net income $769 $597 $2,578 $1,602
Earnings per share:
Basic $.33 $.25 $ 1.10 $ .68
Diluted $.30 $.23 $ 1.01 $ .65
Weighted average
shares 2,353,025 2,359,191 2,352,286 2,357,984
Numerator for
dilutive earnings
per share- income
available to common
stockholders after
assumed conversions $788 $622 $ 2,672 $ 1,702
Weighted average
shares and assumed
dilution 2,630,888 2,649,828 2,656,315 2,622,782
Condensed Consolidated Balance Sheets
(Unaudited, Dollars in Thousands)
March 31, March 31,
2000 1999
Cash $ 259 $509
Finance receivables, net 52,015 39,923
Other Assets 1,861 1,825
Total Assets $54,135 $42,257
Line of credit $38,415 $29,965
Other notes payable 1,318 1,607
Other liabilities 3,275 2,144
Total liabilities 43,008 33,716
Shareholders' equity 11,127 8,541
Total liabilities and Shareholders' equity $54,135 $42,257
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, 1999. 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.