Florida-based auto lender Nicholas Financial reported a $269.3 million loan portfolio in the fourth quarter. That’s up nearly $20 million from a year ago, when the company reported $249.8 million, according to an earnings report filed yesterday with the SEC.
Nicholas said its net earnings decreased 40% to $2.9 million in the quarter, compared to $4.8 million a year ago.
“Our results for the three and twelve months ended March 31, 2014 were adversely affected by a reduction in the gross portfolio yield, an increase in the provision for losses and an increase in operating expenses compared to corresponding periods ended March 31, 2013,” said Peter L. Vosotas, chairman and CEO.
Nicholas also said its previously announced acquisition by New York based Prospect Capital had been delayed past its June 12, 2014 date. That’s because Prospect is in the middle of a dispute with the SEC. In March, staff at the government agency asserted that certain unconsolidated holding company subsidiaries through which Prospect holds its investment in operating units should be consolidated.
That dispute is delaying Prospect’s registration statement on Form N-14 related to acquisition of Nicholas.
Nicholas’ board will keep an eye on Prospect’s appeal at SEC and will consider various alternatives, the company said, adding that the board would not rule out terminating the proposed acquisition.Like This Post