NICHOLAS FINANCIAL, INC. (NASDAQ:NICK) Files An 8-K Other Events
Item 8.01Other Events.
On April 13, 2020, in response to the experienced and anticipated impacts on originations, operations, and cash flow across the branch network as a result of the COVID-19 pandemic, the Company announced certain proactive measures. The Company is temporarily furloughing approximately 40 employees that represent 15% of the Company’s workforce. The employees will not receive compensation from the Company during the furlough period starting April 14, 2020 for hourly employees and April 18, 2020 for salaried employees, respectively; however, subject to local regulations, these employees will be eligible for unemployment benefits. The Company anticipates the furlough period will end on May 17, 2020 and all furloughed employees will be eligible to return to work starting on May 18, 2020. The furlough period will be reassessed as business conditions dictate by the Company.
Forward-Looking Information
This report contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on management’s current beliefs and assumptions, as well as information currently available to management. When used in this document, the words “anticipate”, “estimate”, “expect”, “will”, “may”, “plan,” “believe”, “intend” and similar expressions are intended to identify forward-looking statements. Such statements, including statements about the expected impact of exit and disposal activities, material impairments and Covid-19, are subject to certain risks, uncertainties and assumptions, including but not limited to the risk factors discussed under “Item 1A – Risk Factors” in our Annual Report on Form 10-K, and our other filings made with the U.S. Securities and Exchange Commission (“SEC”). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. All forward-looking statements included in this report are based on information available to the Company as of the date of filing, and the Company assumes no obligation to update any such forward-looking statement except as required by law.
About NICHOLAS FINANCIAL, INC. (NASDAQ:NICK)
Nicholas Financial, Inc. (Nicholas Financial-Canada) is a holding company. The Company’s business activities are conducted through its subsidiary, Nicholas Financial, Inc. (Nicholas Financial). Nicholas Financial is a specialized consumer finance company engaged primarily in acquiring and servicing automobile finance installment contracts (Contracts) for purchases of new and used automobiles and light trucks. Nicholas Financial also originates direct consumer loans (Direct Loans) and sells consumer-finance related products. Another subsidiary, Nicholas Data Services, Inc. (NDS), acts as the interim holding company for Nicholas Financial. The Company is engaged in the business of providing financing programs, primarily on behalf of purchasers of new and used cars and light trucks. The Company originates Direct Loans in Florida and North Carolina. As of March 31, 2016, the Company’s automobile finance programs were conducted in 18 states.
