EX-99.1 2 nick-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

 

img246915618_0.jpg 

 

 

FOR IMMEDIATE RELEASE

Nicholas

 

 

Contact: Irina Nashtatik

 

NASDAQ: NICK

Nicholas Financial, Inc.

Corporate Headquarters

2454 McMullen-Booth Rd.

Building C, Suite 501

Clearwater, FL 33759

 

              CFO

               Ph # (727)-726-0763

 

Web site: www.nicholasfinancial.com

Nicholas Financial Reports

3rd Quarter Fiscal Year 2023 Results

•
On November 3, 2022, the Company announced a change in operating strategy and restructuring plan with the goal of reducing operating expenses and freeing up capital. As part of this plan, the Company is shifting from a decentralized to a regionalized business model.
•
During the three months ended December 31, 2022, the Company discontinued originating direct consumer loans and reduced its originations of new Contracts purchased by 76.8% as compared to the same period year-over-year.
•
For the three months ended December 31, 2022, the Company incurred $3.2 million in restructuring expenses pursuant to the Company's disclosed restructuring plan.

February 9, 2023 – Clearwater, Florida - Nicholas Financial, Inc. (NASDAQ: NICK, the ' Company") announced a net loss for the three months ended December 31, 2022 of $13.4 million compared to net loss of $0.7 million for the three months ended December 31, 2021. Basic and diluted net loss per share was $1.85 for the three months ended December 31, 2022 as compared to basic and diluted net loss per share of $0.09 for the three months ended December 31, 2021.

Interest and fee income on finance receivables decreased 7.9% to $11.3 million for the three months ended December 31, 2022 as compared to $12.2 million for the three months ended December 31, 2021. Provision for credit losses increased 541.6% to $10.7 million for the three months ended December 31, 2022 as compared to $1.7 million for the three months ended December 31, 2021. Operating expenses increased 9.0% to $9.7 million for the three months ended December 31, 2022 compared to $8.9 million for the three months ended December 31, 2021. The increase in operating expenses was primarily attributed to restructuring cost totaling $3.2 million and associated with branch closures, severance expenses, impairment charges for leased assets and cease-use of contractual services.

The Company reported a loss before income taxes for the three months ended December 31, 2022 of $10.4 million compared to loss before income taxes of $0.9 million for the three months ended December 31, 2021. The Company established a valuation allowance for deferred tax assets in the amount of $5.7 million during the three months ended December 31, 2022, which resulted in recording an income tax expense of approximately $3.0 million for the three months ended December 31, 2022 compared to income tax benefit of approximately $209 thousand for the three months ended December 31, 2021.

The Company announced net loss for the nine months ended December 31, 2022 of $18.3 million compared to net income of $2.6 million for the nine months ended December 31, 2021. Basic and diluted net loss per share was $2.49 for the nine months ended December 31, 2022 as compared to basic and diluted net income per share of $0.34 for the nine months ended December 31, 2021.

Interest and fee income on finance receivables decreased 4.7% to $35.6 million for the nine months ended December 31, 2022 as compared to $37.4 million for the nine months ended December 31, 2021. Provision for credit losses increased 513.1% to $23.3 million for the nine months ended December 31, 2022 as compared to $3.8 million for the nine months ended December 31, 2021. Operating expenses increased to approximately $26.5 million for the nine months ended December 31, 2022 from approximately $25.1 million for the nine months ended December 31, 2021. The increase in operating expenses was primarily attributed to restructuring cost totaling $4.0 million and associated with branch closures, severance expenses, impairment charges for leased assets and cease-use of contractual services.

The Company reported a loss before income taxes for the nine months ended December 31, 2022 of $16.9 million compared to income before taxes of $3.6 million for the nine months ended December 31, 2021. The Company established a valuation allowance for deferred tax assets in the amount of $5.7 million during the three months ended December 31, 2022, which resulted in recording an income tax expense of approximately $1.4 million for the nine months ended December 31, 2022 compared to income tax expense of approximately $0.9 million for the nine months ended December 31, 2021.

 

 

For the nine months ended December 31, 2022, the Company originated $61.8 million in finance receivables, collected $74.7 million in principal payments, and reduced debt by $10.0 million and decreased cash by $3.9 million.

“Net loss for the fiscal quarter primarily resulted from the rise in charge offs and payment delinquencies, which increased the provision for credit losses. We also incurred sizable expenses associated with our restructuring efforts to achieve the change in our operating strategy. The net loss for fiscal quarter resulted in a three-year cumulative loss position and lead us to recognize large income tax expenses. However, the Company continues to carry forward $7.4 million in gross net operating losses, which we expect will be available to offset our future taxable earnings,” commented Mike Rost, CEO of Nicholas Financial.

“During the quarter, we outsourced the servicing of the accounts to Westlake Portfolio Management. This allowed us to reduce our operating expenses as we closed our branch network and downsized to less than twenty employees. As we continued restructuring our business model, we negotiated our new credit facility and executed it in January 2023. The emphasis has been on protecting and maximizing shareholder equity, along with efforts to return the Company to profitability,” Rost concluded.

Jeff Royal, Chair of the Company’s Board, added: “The Board is exploring opportunities to allocate any excess capital to increase shareholder returns, whether by acquiring loan portfolios or businesses or by investing outside of the Company’s traditional business.”

 

Key Performance Indicators on Contracts Purchased

 

(Purchases in thousands)

 

 

 

 

Number of

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

Contracts

 

 

Principal Amount

 

 

Amount

 

 

Average

 

 

 

Average

 

 

 

Average

 

/Quarter

 

 

Purchased

 

 

Purchased#

 

 

Financed*^

 

 

APR*

 

 

 

Discount%*

 

 

 

Term*

 

 

2023

 

 

 

3,913

 

 

$

45,947

 

 

$

11,765

 

 

 

22.7

 

%

 

 

6.6

 

%

 

 

48

 

 

3

 

 

 

383

 

 

 

4,511

 

 

 

11,778

 

 

 

22.4

 

%

 

 

6.8

 

%

 

 

48

 

 

2

 

 

 

1,595

 

 

 

19,082

 

 

 

11,964

 

 

 

22.7

 

%

 

 

6.4

 

%

 

 

48

 

 

1

 

 

 

1,935

 

 

 

22,354

 

 

 

11,552

 

 

 

22.9

 

%

 

 

6.6

 

%

 

 

48

 

 

2022

 

 

 

7,793

 

 

$

85,804

 

 

$

11,002

 

 

 

23.1

 

%

 

 

6.9

 

%

 

 

47

 

 

4

 

 

 

2,404

 

 

 

27,139

 

 

 

11,289

 

 

 

22.9

 

%

 

 

6.9

 

%

 

 

47

 

 

3

 

 

 

1,735

 

 

 

19,480

 

 

 

11,228

 

 

 

23.1

 

%

 

 

6.8

 

%

 

 

47

 

 

2

 

 

 

1,707

 

 

 

18,880

 

 

 

11,061

 

 

 

23.0

 

%

 

 

6.7

 

%

 

 

47

 

 

1

 

 

 

1,947

 

 

 

20,305

 

 

 

10,429

 

 

 

23.2

 

%

 

 

7.0

 

%

 

 

46

 

 

2021

 

 

 

7,307

 

 

$

74,025

 

 

$

10,135

 

 

 

23.4

 

%

 

 

7.5

 

%

 

 

46

 

 

4

 

 

 

2,429

 

 

 

24,637

 

 

 

10,143

 

 

 

23.2

 

%

 

7.5

 

%

 

 

46

 

 

3

 

 

 

1,483

 

 

 

15,285

 

 

 

10,307

 

 

 

23.4

 

%

 

 

7.5

 

%

 

 

46

 

 

2

 

 

 

1,709

 

 

 

17,307

 

 

 

10,127

 

 

 

23.5

 

%

 

 

6.8

 

%

 

 

46

 

 

1

 

 

 

1,686

 

 

 

16,796

 

 

 

9,962

 

 

 

23.5

 

%

 

 

8.0

 

%

 

 

46

 

 

2020

 

 

 

7,647

 

 

$

76,696

 

 

$

10,035

 

 

 

23.4

 

%

 

 

7.9

 

%

 

 

47

 

 

Key Performance Indicators on Direct Loans Originated
(Originations in thousands)

 

 

 

 

Number of

 

 

 

Principal

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

Loans

 

 

 

Amount

 

 

Average Amount

 

 

Average

 

 

 

Average

 

/Quarter

 

 

Originated

 

 

 

Originated

 

 

Financed*^

 

 

APR*

 

 

 

Term*

 

 

2023

 

 

 

3,662

 

 

 

$

15,822

 

 

$

4,277

 

 

 

30.4

 

%

 

 

26

 

 

3

 

 

 

245

 

 

 

 

1,080

 

 

 

4,128

 

 

 

29.6

 

%

 

 

27

 

 

2

 

 

 

1,427

 

 

 

 

6,527

 

 

 

4,574

 

 

 

30.3

 

%

 

 

25

 

 

1

 

 

 

1,990

 

 

 

 

8,215

 

 

 

4,128

 

 

 

31.2

 

%

 

 

25

 

 

2022

 

 

 

6,770

 

 

 

 

$

28,740

 

 

$

4,307

 

 

 

30.5

 

%

 

 

26

 

 

4

 

 

 

1,584

 

 

 

 

7,458

 

 

 

4,708

 

 

 

30.0

 

%

 

 

27

 

 

3

 

 

 

2,282

 

 

 

 

8,505

 

 

 

3,727

 

 

31.8

 

%

 

 

24

 

 

2

 

 

 

1,588

 

 

 

 

7,040

 

 

 

4,433

 

 

 

30.0

 

%

 

 

26

 

 

1

 

 

 

1,316

 

 

 

 

5,737

 

 

 

4,359

 

 

30.1

 

%

 

 

25

 

 

2021

 

 

 

3,497

 

 

 

 

$

14,148

 

 

$

4,131

 

 

 

29.6

 

%

 

 

25

 

 

4

 

 

 

753

 

 

 

 

3,284

 

 

 

4,362

 

 

29.6

 

%

 

 

25

 

 

3

 

 

 

1,265

 

 

 

 

4,605

 

 

 

3,641

 

 

30.9

 

%

 

 

22

 

 

2

 

 

 

924

 

 

 

 

3,832

 

 

 

4,147

 

 

29.2

 

%

 

 

25

 

 

1

 

 

 

555

 

 

 

 

2,427

 

 

 

4,373

 

 

28.7

 

%

 

 

26

 

 

2020

 

 

 

3,142

 

 

 

 

$

12,638

 

 

$

4,017

 

 

 

28.2

 

%

 

 

25

 

*Each average included in the tables is calculated as a simple average.

^Average amount financed is calculated as a single loan amount.

#Bulk portfolio purchase excluded for period-over-period comparability

 

 

 

Nicholas Financial, Inc. (NASDAQ:NICK) is a specialized consumer finance company. The Company currently engages primarily in acquiring and servicing automobile finance installment contracts (“Contracts”) for purchases of used and new automobiles and light trucks. For an index of Nicholas Financial, Inc’s new releases or to obtain a specific release, please visit our website at www.nicholasfinancial.com.

 

Cautionary Note regarding Forward-Looking Statements

This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, that represent the Company’s current expectations or beliefs concerning future events. Statements other than those of historical fact, as well as those identified by words such as “anticipate,” “estimate,” intend,” “plan,” “expect,” “project,” "explore" “believe,” “may,” “will,” “should,” “would,” “could,” “probable” and any variation of the foregoing and similar expressions are forward-looking statements. These statements, which include statements regarding the exploration of opportunities to allocate any excess capital to increase shareholder returns, are inherently uncertain and subject to certain risks, uncertainties and assumptions that may cause results to differ materially from those expressed or implied in forward-looking statements, including without limitation:

 

• the risk that the anticipated benefits of the restructuring and change in operating strategy, including the servicing and financing arrangements with Westlake (including without limitation the expected reduction in overhead, streamlining of operations or reduction in compliance risk), do not materialize to the extent expected or at all, or do not materialize within the timeframe targeted by management;

 

• the risk that the actual servicing fees paid by the Company under the Westlake servicing agreement, which the Company is classifying as administrative costs on its financial statements, exceed the amounts estimated;

 

• the risk that the actual interest payments made by the Company under the Westlake loan agreement exceed the range estimated;

 

• risks arising from the loss of control over servicing, collection or recovery processes that we have controlled in the past and potentially, termination of these services by Westlake (a failure of Westlake to perform their services under the servicing agreement in a satisfactory manner may have a significant adverse effect on our business);

• the risk that the actual costs of the exit and disposal activities in connection with the consolidation of workforce and closure of offices exceed the Company’s estimates or that such activities are not completed on a timely basis;

 

• the risk that the Company underestimates the staffing and other resources needed to operate effectively after consolidating its workforce and closing offices;

 

• uncertainties surrounding the Company’s success in developing and executing on a new business plan;

 

• risks and uncertainties surrounding the Company’s ability to use its net operating losses in future periods; and

 

• uncertainties surrounding the Company’s ability to use any excess capital to increase shareholder returns, including without limitation, by acquiring loan portfolios or businesses or investing outside of the Company’s traditional business; and

 

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 press release are based on information available to the Company as the date of the press release, and the Company assumes no obligation to update any such forward-looking statement. Prospective investors should also consult the risk factors described from time to time in the Company’s other filings made with the SEC, including its reports on Forms 10-K, 10-Q, 8-K and annual reports to shareholders.

 

All forward-looking statements and cautionary statements included in this document are made as of the date hereof 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.

 

## More ##

 

 

 

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,

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fee income on finance receivables

 

$

11,268

 

 

$

12,240

 

 

$

35,580

 

 

 

$

37,406

 

 

Net gain on equity investments

 

 

 

 

 

-

 

 

 

66

 

 

 

 

-

 

 

Total Revenue

 

$

11,268

 

 

$

12,240

 

 

$

35,646

 

 

 

$

37,406

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

9,672

 

 

 

8,863

 

 

 

26,491

 

 

 

 

25,127

 

 

Provision for credit losses

 

 

10,730

 

 

 

1,675

 

 

 

23,280

 

 

 

 

3,800

 

 

Interest expense

 

 

1,239

 

 

 

2,613

 

 

 

2,782

 

 

 

 

4,923

 

 

Total expenses

 

 

21,641

 

 

 

13,151

 

 

 

52,553

 

 

 

 

33,850

 

 

(Loss)/Income before income taxes

 

 

(10,373

)

 

 

(911

)

 

 

(16,907

)

 

 

 

3,556

 

 

Income tax expense/(benefit)

 

 

3,000

 

 

 

(209

)

 

 

1,415

 

 

 

 

926

 

 

Net (loss)/income

 

$

(13,373

)

 

$

(702

)

 

$

(18,322

)

 

 

$

2,630

 

 

(Loss)/Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(1.85

)

 

$

(0.09

)

 

$

(2.49

)

 

 

$

0.34

 

 

Diluted

 

$

(1.85

)

 

$

(0.09

)

 

$

(2.49

)

 

 

$

0.34

 

 

 

Condensed Consolidated Balance Sheets

(Unaudited, In Thousands)

 

 

 

December 31,

 

 

March 31,

 

 

 

2022

 

 

2022

 

Cash and restricted cash

 

$

914

 

 

$

4,775

 

Finance receivables, net

 

 

139,719

 

 

 

168,600

 

Repossessed assets

 

 

1,041

 

 

 

658

 

Operating lease right-of-use assets

 

 

1,176

 

 

 

4,277

 

Other assets

 

 

2,354

 

 

 

5,260

 

Total assets

 

$

145,204

 

 

$

183,570

 

Credit facility, net of debt issuance costs

 

$

44,624

 

 

$

54,813

 

Note payable

 

 

-

 

 

 

3,244

 

Operating lease liabilities

 

 

2,736

 

 

 

4,410

 

Other liabilities

 

 

2,264

 

 

 

4,717

 

Total liabilities

 

 

49,624

 

 

 

67,184

 

Shareholders’ equity

 

 

95,580

 

 

 

116,386

 

Total liabilities and shareholders’ equity

 

$

145,204

 

 

$

183,570

 

Book value per share

 

$

13.11

 

 

$

15.42

 

 

 

 

 

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

(In thousands)

 

 

(In thousands)

 

 

Portfolio Summary

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Average finance receivables (1)

 

$

165,783

 

 

$

176,949

 

 

$

174,004

 

 

 

$

179,333

 

 

Average indebtedness (2)

 

$

52,577

 

 

$

64,824

 

 

$

59,739

 

 

 

$

72,002

 

 

Interest and fee income on finance receivables

 

$

11,268

 

 

$

12,240

 

 

$

35,580

 

 

 

$

37,406

 

 

Interest expense

 

 

1,239

 

 

 

2,613

 

 

 

2,782

 

 

 

 

4,923

 

 

Net interest and fee income on finance receivables

 

$

10,029

 

 

$

9,627

 

 

$

32,798

 

 

 

$

32,483

 

 

Portfolio yield (3)

 

 

27.19

 

%

 

27.67

 

%

 

27.26

 

%

 

 

27.81

 

%

Interest expense as a percentage of average finance receivables

 

 

2.99

 

%

 

5.91

 

%

 

2.13

 

%

 

 

3.66

 

%

Provision for credit losses as a percentage of average finance receivables

 

 

25.89

 

%

 

3.79

 

%

 

17.84

 

%

 

 

2.83

 

%

Net portfolio yield (3)

 

 

(1.69

)

%

 

17.97

 

%

 

7.29

 

%

 

 

21.32

 

%

Operating expenses as a percentage of average finance receivables (4)

 

 

23.34

 

%

 

20.04

 

%

 

20.30

 

%

 

 

18.68

 

%

Pre-tax yield as a percentage of average finance receivables (5)

 

 

(25.03

)

%

 

(2.07

)

%

 

(13.01

)

%

 

 

2.64

 

%

Net charge-off percentage (6)

 

 

16.57

 

%

 

5.67

 

%

 

8.79

 

%

 

 

4.70

 

%

Finance receivables

 

 

 

 

 

 

 

$

155,213

 

 

 

$

176,173

 

 

Allowance percentage (7)

 

 

 

 

 

 

 

 

7.06

 

%

 

 

2.06

 

%

Total reserves percentage (8)

 

 

 

 

 

 

 

 

10.64

 

%

 

 

6.00

 

%

 

Note: All three-month and nine-month statement of income performance indicators expressed as percentages have been annualized.

(1) Average finance receivables represent the average of finance receivables throughout the period.

(2) Average indebtedness represents the average daily outstanding borrowings under the line of credit. Average indebtedness does not include the PPP loan.

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

(4) Operating expenses as presented include restructuring cost of $3.2 million. Operating expenses net of restructuring cost as a percentage of average finance receivable would have been 15.52% and 17.82% for the three and nine months ended December 31, 2022.

(5) Pre-tax yield represents net portfolio yield minus operating expenses, as a percentage of average finance receivables.

(6) Net charge-off percentage represents net charge-offs (charge-offs less recoveries) divided by average finance receivables, outstanding during the period.

(7) Allowance percentage represents the allowance for credit losses divided by finance receivables outstanding as of ending balance sheet dates.

(8) Total reserves percentage represents the allowance for credit losses, purchase price discount, and unearned dealer discounts divided by finance receivables outstanding as of ending balance sheet date.

 

 

 

 

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”), excluding any Chapter 13 bankruptcy accounts:

(In thousands, except percentages)

 

Contracts

 

Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding

 

 

30 – 59 days

 

 

60 – 89 days

 

 

 

90 – 119 days

 

 

 

120+

 

 

 

Total

 

 

December 31, 2022

 

$

131,302

 

 

$

16,649

 

 

$

7,351

 

 

 

$

3,615

 

 

 

$

37

 

 

 

$

27,652

 

 

 

 

 

 

 

 

12.68

 

%

 

5.60

 

%

 

 

2.75

 

%

 

 

0.03

 

%

 

 

21.06

 

%

December 31, 2021

 

$

153,480

 

 

$

9,886

 

 

$

4,176

 

 

 

$

1,662

 

 

 

$

53

 

 

 

$

15,777

 

 

 

 

 

 

 

 

6.44

 

%

 

2.72

 

%

 

 

1.08

 

%

 

 

0.03

 

%

 

 

10.28

 

%

 

 

 

 

 

 

 

Direct Loans

 

Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding

 

 

30 – 59 days

 

 

60 – 89 days

 

 

 

90 – 119 days

 

 

 

120+

 

 

 

Total

 

 

December 31, 2022

 

$

23,700

 

 

$

2,989

 

 

$

1,102

 

 

 

$

515

 

 

 

$

6

 

 

 

$

4,612

 

 

 

 

 

 

 

 

12.61

 

%

 

4.65

 

%

 

 

2.17

 

%

 

 

0.03

 

%

 

 

19.46

 

%

December 31, 2021

 

$

22,545

 

 

$

636

 

 

$

199

 

 

 

$

130

 

 

 

$

0

 

 

 

$

965

 

 

 

 

 

 

 

 

2.82

 

%

 

0.88

 

%

 

 

0.58

 

%

 

 

0.00

 

%

 

 

4.28

 

%

 

The following table presents selected information on Contracts purchased and Direct Loans originated by the Company:

 

 

 

Contracts

 

 

Direct Loans

 

 

 

 

Three months ended

 

 

Three months ended

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

(Purchases in thousands)

 

 

(Originations in thousands)

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Purchases/Originations

 

$

4,511

 

 

$

19,480

 

 

$

1,080

 

 

 

$

8,505

 

 

Average APR

 

 

22.4

 

%

 

23.1

 

%

29.6

 

%

 

31.8

 

%

Average discount

 

 

6.8

 

%

 

6.8

 

%

N/A

 

 

 

N/A

 

 

Average term (months)

 

 

48

 

 

 

47

 

 

 

27

 

 

 

 

24

 

 

Average amount financed

 

$

11,778

 

 

$

11,228

 

 

$

4,128

 

 

 

$

3,727

 

 

Number of contracts

 

 

383

 

 

 

1,735

 

 

 

245

 

 

 

 

2,282

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

 

Direct Loans

 

 

 

 

Nine months ended

 

 

Nine months ended

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

(Purchases in thousands)

 

 

(Originations in thousands)

 

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Purchases/Originations

 

$

45,947

 

 

$

58,665

 

 

$

15,822

 

 

 

$

21,282

 

 

Average APR

 

 

22.7

 

%

 

23.1

 

%

 

30.4

 

%

 

 

30.6

 

%

Average discount

 

 

6.6

 

%

 

6.8

 

%

N/A

 

 

 

N/A

 

 

Average term (months)

 

 

48

 

 

 

47

 

 

 

26

 

 

 

 

25

 

 

Average amount financed

 

$

11,765

 

 

$

10,906

 

 

$

4,277

 

 

 

$

4,173

 

 

Number of contracts

 

 

3,913

 

 

 

5,389

 

 

 

3,662

 

 

 

 

5,186

 

 

 

The following table presents selected information on the entire Contract and Direct Loan portfolios of the Company:

 

 

 

Contracts

 

 

Direct Loans

 

 

 

 

As of

 

 

As of

 

 

 

 

December 31,

 

 

December 31,

 

 

Portfolio

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

Average APR

 

 

22.8

 

%

 

22.8

 

%

 

30.0

 

%

 

 

29.8

 

%

Average discount

 

 

6.8

 

%

 

7.4

 

%

N/A

 

 

 

N/A

 

 

Average term (months)

 

 

50

 

 

50

 

 

26

 

 

 

26

 

 

Number of active contracts

 

 

16,364

 

 

 

20,013

 

 

 

6,505

 

 

 

 

6,103

 

 

## End ##