Mon, Jul 1, 8:28 PM (68 days ago)
Nicholas Financial, Inc. (NFI) reported a significant decline in financial performance for the fiscal year ending March 31, 2024. Revenue dropped 50% to $22.2 million from $44.3 million in the previous fiscal year, primarily due to a decrease in average finance receivables, which fell from $165.4 million to $88.3 million. The company recorded a net loss of $20.8 million, or $2.86 per share, compared to a net loss of $34.1 million, or $4.65 per share, in the prior year. Operating expenses were reduced to $15.5 million from $32.4 million, reflecting the impact of restructuring efforts. The company also reported a net charge-off percentage increase to 30.6% from 15.9%. Strategically, NFI ceased new loan originations and outsourced servicing, collections, and recovery operations. Additionally, the company reclassified its finance receivables to held for sale and adopted new accounting standards (ASU 2016-13) for credit losses. Following the fiscal year-end, NFI completed the sale of its finance receivables to Westlake Services, LLC for net proceeds of $40.6 million and acquired a 56.5% stake in Amplex Electric, Inc., transitioning its business focus to broadband services. These moves are part of a broader restructuring plan aimed at reallocating capital to enhance shareholder returns.