NICK Earns 40 Cents Per Share for Q4

Here are the latest results:

Nicholas Financial, Inc. announced that for the three months ended March 31, 2013, net earnings decreased 20% to $4,865,000 as compared to $6,045,000 for the three months ended March 31, 2012. Per share diluted net earnings decreased 20% to $0.40 as compared to $0.50 for the three months ended March 31, 2012. Revenue increased 3% to $17,688,000 for the three months ended March 31, 2013 as compared to $17,182,000 for the three months ended March 31, 2012.

For the year ended March 31, 2013, net earnings decreased 10% to $19,966,000 as compared to $22,230,000 for the year ended March 31, 2012. Per share diluted net earnings decreased 12% to $1.63 as compared to $1.85 for the year ended March 31, 2012. Revenue increased 4% to $70,628,000 for the year ended March 31, 2013 as compared to $68,167,000 for the year ended March 31, 2012.

“During the three months ended March 31, 2013, our results were affected by an increase in the net charge-off rate, an increase in operating expenses and an increase in interest expense,” stated Peter L. Vosotas, Chairman and CEO. “Subject to market conditions, we intend to continue expanding our branch network during the coming year.”

On May 7th the Board of Directors declared a cash dividend of $0.12 per share on its common stock, to be paid on June 28, 2013 to shareholders of record as of June 21, 2013. Subject to market conditions and profitability targets, the Company anticipates it will continue to declare quarterly cash dividends in the future, however no assurances can be given.

This was another good report for NICK. They can keep churning out 40 cents per share without much difficulty. For the fiscal year, NICK earned $1.63 per share.

All of the fundamental ratios are still very solid. The net earnings yield is over 22%. Costs are a bit on the high side but still within the historical range. Credit losses came in just over 1%. That’s down from last quarter.

I’m most impressed by how much debt NICK has paid off since the big dividend last year. They borrowed all that money they paid out to shareholders. From the fiscal second to third quarter, NICK’s indebtedness rose by $32.1 million. But last quarter, indebtedness dropped by more than $14.3 million. That’s pretty impressive.

The simplest way I can put it is that NICK’s business is almost like an 11% bond whose quality seems to improve every quarter. The company can easily raise their dividend another 20%.

Here’s a spreadsheet detailing some of NICK’s performance stats.

Posted by on May 9th, 2013 at 4:31 pm


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