Nicholas Financial Reports 3rd Quarter Results

Nicholas Financial Reports 3rd Quarter Results

CLEARWATER, Fla., Jan. 30, 2013 (GLOBE NEWSWIRE) -- Nicholas Financial, Inc.
(Nasdaq:NICK) announced that for the three months ended December 31, 2012 net
earnings decreased 15% to $4,566,000 as compared to $5,363,000 for the three
months ended December 31, 2011. Per share diluted net earnings decreased 18%
to $0.37 as compared to $0.45 for the three months ended December 31, 2011.
Revenue increased 4% to $17,889,000 for the three months ended December 31,
2012 as compared to $17,140,000 for the three months ended December 31, 2011.

For the nine months ended December 31, 2012, net earnings decreased 7% to
$15,101,000 as compared to $16,186,000 for the nine months ended December 31,
2011. Per share diluted net earnings decreased 9% to $1.24 as compared to
$1.35 for the nine months ended December 31, 2011. Revenue increased 4% to
$52,940,000 for the nine months ended December 31, 2012 as compared to
$50,985,000 for the nine months ended December 31, 2011.

"During the three months ended December 31, 2012, our results were affected by
an increase in the net charge-off rate and an after-tax charge of $747,000 or
$0.06 per share, which is related to a 5% withholding tax associated with the
one-time special cash dividend of $2.00 per share paid in December 2012. The
withholding is required under the Canada-United States Income Tax Convention.
While competition remains fierce, we are committed to maintaining our
conservative underwriting principles. We will continue to develop additional
markets and expect to continue our branch network expansion," stated Peter L.
Vosotas, Chairman and CEO.

Nicholas Financial, Inc. is one of the largest publically 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 12,100,000 shares of common stock outstanding. For an index of
Nicholas Financial, Inc. news releases and public filings please visit our web
site at www.nicholasfinancial.com.

The Nicholas Financial, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6776

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, 2012. 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   Nine months ended
                                  December 31,          December 31,
                                  2012       2011       2012       2011
Revenue:                                                         
Interest and fee income on finance $17,879    $17,127    $52,911    $50,950
receivables
Sales                              10         13         29         35
                                  17,889     17,140     52,940     50,985
Expenses:                                                        
Operating                          7,120      6,695      21,453     20,109
Dividend tax                       1,287      60         1,419      120
Provision for credit losses        819        455        1,138      712
Interest expense                   1,275      1,237      3,717      3,703
Change in fair value of interest   (37)       --         646        --
rate swaps
                                  10,464     8,447      28,373     24,644
                                                                
Operating income before income     7,425      8,693      24,567     26,341
taxes
Income tax expense                 2,859      3,330      9,466      10,155
Net income                         $4,566     $5,363     $15,101    $16,186
                                                                
Earnings per share:                                              
Basic                              $0.38      $0.46      $1.26      $1.38
Diluted                            $0.37      $0.45      $1.24      $1.35
Dividends declared per share       $2.12      $0.10      $2.34      $0.20
                                                                
Weighted average shares            11,982,000 11,783,000 11,962,000 11,733,000
                                                                
Weighted average shares and        12,193,000 12,050,000 12,192,000 12,015,000
assumed dilution


Condensed Consolidated Balance Sheets
(Unaudited, In Thousands)
                                                      
                                          December 31, March 31,
                                          2012         2012
Cash                                       $4,667       $2,803
Finance receivables, net                   246,343      242,349
Other assets                               12,455       12,084
                                                      
Total assets                               $263,465     $257,236
                                                      
Line of credit                             $130,500     $112,000
Other liabilities                          9,025        9,297
                                                      
Total liabilities                          139,525      121,297
                                                      
Shareholders' equity                       123,940      135,939
                                                      
Total liabilities and shareholders' equity $263,465     $257,236

                          Three months ended        Nine months ended
                          December 31,              December 31,
Portfolio Summary          2012         2011         2012         2011
Average finance
receivables, net of
unearned interest          $281,553,866 $274,595,968 $281,242,951 $272,213,775
(1)Average Net Finance
Receivables (1)
Average indebtedness (2)   $114,131,239 $116,000,000 $111,293,746 $116,668,640
Interest and fee income on $17,878,745  $17,126,855  $52,910,831  $50,950,173
finance receivables (3)
Interest expense           1,275,015    1,236,866    3,717,386    3,702,737
Net interest and fee
income on finance          $16,603,730  $15,889,989  $49,193,445  $47,247,436
receivables
Weighted average           23.34%       23.79%       23.55%       23.87%
contractual rate (4)
Average cost of borrowed   4.47%        4.27%        4.45%        4.23%
funds (2)
Gross portfolio yield (5)  25.40%       24.95%       25.08%       24.96%
Interest expense as a
percentage of average      1.81%        1.80%        1.76%        1.81%
finance receivables, net
of unearned interest
Provision for credit
losses as a percentage of
average finance            1.16%        0.66%        0.54%        0.35%
receivables, net of
unearned interest
Net portfolio yield (5)    22.43%       22.49%       22.78%       22.80%
Marketing, salaries,
employee benefits,
depreciation, dividend tax
and administrative         11.86%       9.76%        10.76%       9.82%
expenses as a percentage
of average finance
receivables, net of
unearned interest (6)
Pre-tax yield as a
percentage of average      10.57%       12.73%       12.02%       12.98%
finance receivables, net
of unearned interest (7)
Write-off to liquidation   7.94%        7.16%        6.82%        5.96%
(8)
Net charge-off percentage  6.75%        5.70%        5.74%        4.69%
(9)

Note: All three and nine 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.

(2) Average indebtedness represents the average outstanding borrowings under
the Line. Average cost of borrowed funds represents interest expense as a
percentage of average indebtedness.

(3) Interest and fee income on finance receivables does not include revenue
generated by Nicholas Data Services, Inc., ("NDS") the wholly-owned software
subsidiary of Nicholas Financial, Inc.

(4) Weighted average contractual rate represents the weighted average annual
percentage rate (APR) of all automobile finance installment contracts
purchased and direct consumer loans originated during the period.



(5) Gross portfolio yield represents interest and fee income on finance
receivables as a percentage of average finance receivables, net of unearned
interest. Net portfolio yield represents interest and fee income on finance
receivables minus (a) interest expense and (b) the provision for credit losses
as a percentage of average finance receivables, net of unearned interest.

(6) Administrative expenses included in the calculation above are net of
administrative expenses associated with NDS which approximated $54,000 and
$51,000 during the three-month periods ended December 31, 2012 and 2011,
respectively, and $172,000 and $167,000 during the nine-month periods ended
December 31, 2012 and 2011, respectively. The numerators for the three and
nine months include a tax associated with cash dividends. In December 2012,
this amount was substantial due to a $2.00 special cash dividend. Absent the
dividend tax, the percentages would have been 10.03% and 10.08% for the three
and nine months ended December 31, 2012, and 9.67% and 9.76% for the three and
nine months ended December 31, 2011.

(7) Pre-tax yield represents net portfolio yield minus administrative
expenses as a percentage of average finance receivables, net of unearned
interest.

(8) Write-off to liquidation percentage is defined as net charge-offs divided
by liquidation. Liquidation is defined as beginning receivable balance plus
current period purchases minus voids and refinances minus ending receivable
balance.

(9) Net charge-off percentage represents net charge-offs divided by average
finance receivables, net of unearned interest, outstanding during the period.

The following tables present certain information regarding the delinquency
rates experienced by the Company with respect to automobile finance
installment contracts ("Contracts") and direct consumer loans ("Direct
Loans"):

                          Delinquencies
Contracts     Gross Balance 31 – 60 days  61 – 90 days 91 + days  Total
              Outstanding
December 31,  $380,519,395  $17,287,813   $4,529,766   $2,254,123 $24,071,702
2012
                          4.54%         1.19%        0.59%      6.32%
December 31,  $375,306,050  $13,643,453   $3,129,675   $1,125,631 $17,898,759
2011
                          3.64%         0.83%        0.30%      4.77%
Direct Loans  Gross Balance 31 – 60 days  61 – 90 days 91 + days  Total
              Outstanding
December 31,  $8,861,098    $116,251      $29,295      $22,501    $168,047
2012
                          1.31%         0.33%        0.25%      1.89%
December 31,  $6,481,305    $98,826       $11,716      $5,662     $116,204
2011
                          1.53%         0.18%        0.09%      1.80%

The following table presents selected information on Contracts purchased by
the Company, net of unearned interest:

                            Three months ended      Nine months ended
                            December 31,            December 31,
Contracts                    2012        2011        2012         2011
Purchases                    $31,417,597 $32,476,531 $107,893,529 $104,032,460
Weighted APR                 23.10%      23.62%      23.37%       23.75%
Average discount             7.92%       8.41%       7.85%        8.46%
Weighted average term        50          49          49           49
(months)
Average loan                 $10,459     $9,990      $10,228      $9,928
Number of contracts          3,004       3,251       10,549       10,479

CONTACT: Ralph Finkenbrink
         Sr. Vice President, CFO
         Ph # 727-726-0763

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