Nicholas Financial, Inc. (NASDAQ:NICK) announced that for the three months ended September 30, 2016, diluted earnings per share decreased 40% to $0.25 as compared to $0.42 for the three months ended September 30, 2015. Net earnings were $1,970,000 and $3,257,000 for the three months ended September 30, 2016 and 2015, respectively. Revenue remained relatively flat at $22,647,000 for the three months ended September 30, 2016 as compared to $22,687,000 for the three months ended September 30, 2015.
For the six months ended September 30, 2016, per share diluted net earnings decreased 30% to $0.62 as compared to $0.89 for the six months ended September 30, 2015. Net earnings were $4,873,000 and $6,927,000 for the six months ended September 30, 2016 and 2015, respectively. Revenue increased 2% to $45,562,000 for the six months ended September 30, 2016 as compared to $44,712,000 for the six months ended September 30, 2015.
Our net earnings for the three and six months ended September 30, 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 due to a change in the fair value of the interest rate swaps.
“During our second quarter, new loan origination continued to be below Company expectations due to numerous companies looking to acquire automobile retail installment contracts. Some of these companies are willing to acquire loans at riskier pricing, which we believe will ultimately leave those companies with unprofitable portfolios. During our second quarter, we closed three branch locations as a result of these respective markets not meeting the Company’s operating criteria to remain viable branch locations. Also, as previously disclosed, effective October 1, 2016, the Company has moved all loan-servicing operations from the branch locations to a centralized location within its Corporate Headquarters in Clearwater, FL. 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 operations during our third quarter which ends December 31, 2016.” 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 7,779,000 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.
