Nicholas Financial Earns 45 Cents Per Share

Another great quarter from Nicholas Financial ($NICK):

CLEARWATER, Fla., Feb. 2, 2012 (GLOBE NEWSWIRE) — Nicholas Financial, Inc. (Nasdaq:NICK – News) announced that for the three months ended December 31, 2011 net earnings increased 20% to $5,363,000 as compared to $4,475,000 for the three months ended December 31, 2010. Per share diluted net earnings increased 18% to $0.45 as compared to $0.38 for the three months ended December 31, 2010. Revenue increased 7% to $17,140,000 for the three months ended December 31, 2011 as compared to $15,995,000 for the three months ended December 31, 2010.

For the nine months ended December 31, 2011 net earnings increased 35% to $16,186,000 as compared to $12,033,000 for the nine months ended December 31, 2010. Per share diluted net earnings increased 34% to $1.35 as compared to $1.01 for the nine months ended December 31, 2010. Revenue increased 9% to $50,985,000 for the nine months ended December 31, 2011 as compared to $46,679,000 for the nine months ended December 31, 2010.

“Our strong growth in earnings per share for the three and nine months ended December 31, 2011 were primarily the results of a reduction in the net charge-off rate,” stated Peter L. Vosotas, Chairman and CEO. We also recently opened our 60th branch location in Kansas City, MO and we continue to develop additional markets.

As a result of our continued earnings growth and stable capital position, on January 31, 2012 the Board of Directors declared another quarterly dividend equal to $0.10 per common share, to be paid on March 20th to shareholders of record as of March 13th.

A year ago, I wrote that I wouldn’t be surprised to see NICK earn as much as $1.50 per share for this calendar year. Then in July, I upped my forecast to $1.70 per share. In October, I raised it to $1.75 per share.

As it turns out, my last forecast was right: NICK earned $1.75 per share for the 2011 calendar year. Note that NICK’s fiscal year ends on March 31st. I’m just using the calendar year for the sake of comparison.

Going by NICK’s closing price yesterday of $13.45, the stock is going for 7.7 times earnings. That means it has an earnings yield of 13%.

Posted by on February 2nd, 2012 at 9:51 am


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