OLD MARKET CAPITAL Corp 8-K, filed Aug 30, 2022
OLD MARKET CAPITAL Corp (OMCC)
About this 8-K
OLD MARKET CAPITAL Corp filed this 8-K on August 30, 2022.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure
On August 30, 2022, the Company used an investor slide deck at its Annual General Meeting of Shareholders, which is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
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Description |
99.1 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Forward-Looking Information
This Current Report on Form 8-K contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on management’s current beliefs and assumptions, as well as information currently available to management. When used in this document, the words “anticipate”, “estimate”, “expect”, “will”, “may”, “plan,” “believe”, “intend” and similar expressions are intended to identify forward-looking statements. Although Nicholas Financial, Inc., including its subsidiaries (collectively, the “Company,” “we,” “us,” or “our”) believes that the expectations reflected or implied in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Such statements are subject to certain risks, uncertainties and assumptions, including but not limited to 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. Among the key factors that may cause actual results to differ materially from those projected in forward-looking statements include the availability of capital (including the ability to access bank financing), the ability of the Company to successfully implement its strategy, including without limitation with respect to its Direct Loans, recently enacted, proposed or future legislation and the manner in which it is implemented, including the effect of changes in tax law, fluctuations in the economy, the degree and nature of competition and its effects on the Company’s financial results, fluctuations in interest rates, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures, demand for consumer financing in the markets served by the Company, the Company’s products and services, increases in the default rates experienced on Contracts, adverse regulatory changes in the Company’s existing and future markets, the Company’s intentions regarding strategic alternatives, the Company’s ability to expand its business, including its ability to complete acquisitions and integrate the operations of any acquired businesses and to expand into new markets, and the Company’s ability to recruit and retain qualified employees. All forward-looking statements included are based on information available to the Company as of the date of filing, and the Company assumes no obligation to update any such forward-looking statement.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, hereunto duly authorized.
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NICHOLAS FINANCIAL, INC. |
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(Registrant) |
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Date: August 30, 2022 |
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/s/ Irina Nashtatik |
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Irina Nashtatik |
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Chief Financial Officer (Principal Financial Officer) |
Nicholas Financial, Inc. (NASDAQ: NICK) Annual General Shareholders Meeting – August 30, 2022, Charlotte, NC Exhibit 99.1
FORWARD LOOKING STATEMENTS The statements contained in this Presentation that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 31E of the Securities Exchange Act of 1934, including statements regarding the Company’s expectations, hopes, beliefs, intentions, or strategies regarding the future. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. All forward-looking statements included in this document are based on information available to the Company on the date hereof and the Company assumes no obligation to update any such forward-looking statement. Prospective investors should also consult the risks described from time to time in the Company’s Reports on Forms 10-K, 10-Q and 8-K and Annual Reports to Shareholders.
WHO WE ARE: Nicholas Financial, Inc. (NASDAQ: NICK) provides direct consumer loans and purchases installment sales contracts from dealers for the used car and light trucks. We operate through a network in 18 states. Headquarters: Clearwater, Florida Assets (3/31/2022): $183.6 million Market Capitalization: $67.6 Million (August 23, 2022) Founded: 1982 (predecessor company) Public Since: 1987 What we do: We provide primary transportation for the subprime borrower through the local independent auto dealer. Once a borrower is established with us we can assist them with their other credit needs through our direct consumer loan program. We focus on higher-yielding, smaller dollar deals with lower LTV on shorter terms with more warranty coverage that allows for quicker turn and lower risk exposure. Where Our Customers Are Located:
Material Investment in Personnel Training and Development Continual Reinvestment in Technology and Digital Enhancements Increased Focus on Direct Loan Program Proliferation and Strengthening of Proven Business Model Refinance main credit facility Highlights of Fiscal Year 2022: Existing locations Expansion
Fiscal Year Q1-FY23 Contracts Originations
Cost savings reorganization plan – July 2022 We recently consolidated the following branch locations to reduce operating expenses and become more efficient: Ocala, FL Melbourne, FL Columbia, SC Salt Lake City, UT Boise, ID Detroit, MI Louisville, KY South Florida Grand Rapids, MI Houston, TX Milwaukee, WI We also stopped all expansion efforts in Texas. We will continue remote originations and servicing efforts in exited markets from the remaining branches.
Financial Performance – Portfolio Originations For the past six quarters, our combined originations have steadily increased year-over-year. We also outperformed every consecutive quarter during FY22. Our objective is to continue with our fundamental underwriting principals and responsible growth, which reflects in the upwards trends of finance receivables. $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Q2-FY20 Q3-FY20 Q4-FY20 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 $214M $203M $193M $186M $182M $179M $177M $176M $179M Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Total Origination, $ Trend Q2-FY20 Q3-FY20 Q4-FY20 Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 QoQ, +/- 9.39% -3.13% 1.75% -15.55% 9.97% -5.91% 40.38% -6.73% -0.47% 7.97% 23.63% -11.64% YoY, +/- -8.46% -11.09% 22.66% 35.47% 22.62% 40.70% 23.91% 17.38%
Financial Performance – 30+ Days Past Due Delinquency 30+ DQs trends Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 QoQ, +/- -2.75% 1.10% 2.76% -5.53% 0.45% 1.16% 2.41% -2.71% 2.01% YoY, +/- -1.71% -1.34% -1.08% -4.43% -1.23% -1.16% -1.51% 1.32% 2.88%
STATIC POOL ANALYSIS – PRINCIPAL CHARGE OFF:
STATIC POOL ANALYSIS – PRINCIPAL CHARGE OFF:
Financial Performance – Liquidity and Capital Sources As of the end of Q1-FY23, we had $70 million outstanding on our main credit line. We also had the ability to borrow an additional $67 million in credit capital. We are subject to certain debt covenants compliance and reserve adequacy.
Financial Performance – Liquidity and Capital Sources On November 5, 2021 we entered into a senior secured credit facility. Pursuant to the Credit Agreement, our lenders have agreed to extend us a line of credit of up to $175,000,000. The availability of funds is generally limited to an advance rate of between 80% and 85% of the value of eligible receivables, and outstanding advances accrue interest at a rate equal to the Secured Overnight Financing Rate (SOFR) plus 2.25%. The commitment period for advances under the Credit Facility is three years. Shares Repurchase Program: We continue our stock buyback program first announced in May 2019 for a total of $8.0M and then in August 2019 for up to an additional $1.0M of our outstanding shares. From the inception of the program, we repurchased approximately 524,000 shares at an average price of $9.89 per share primarily under a Rule 10b5-1 plans, which permits common stock to be repurchased when the company might otherwise be precluded from doing so under insider trading laws.
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