Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2022 | Nov. 11, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | NICHOLAS FINANCIAL, INC. | |
Entity Central Index Key | 0001000045 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 0-26680 | |
Entity Incorporation, State or Country Code | A1 | |
Entity Tax Identification Number | 59-2506879 | |
Entity Address, Address Line One | 2454 McMullen Booth Road | |
Entity Address, Address Line Two | Building C | |
Entity Address, City or Town | Clearwater | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33759 | |
City Area Code | 727 | |
Local Phone Number | 726-0763 | |
Entity Common Stock Shares Outstanding | 12,700,000 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | NICK | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Assets | ||
Cash | $ 1,503 | $ 4,775 |
Finance receivables, net | 161,696 | 168,600 |
Repossessed assets | 1,208 | 658 |
Operating lease right-of-use assets | 3,282 | 4,277 |
Prepaid expenses and other assets | 1,146 | 1,103 |
Income taxes receivable | 961 | 989 |
Property and equipment, net | 1,468 | 1,783 |
Deferred income taxes | 3,022 | 1,385 |
Total assets | 174,286 | 183,570 |
Liabilities and shareholders’ equity | ||
Credit facility, net of debt issuance costs | 59,349 | 54,813 |
Note payable | 0 | 3,244 |
Net long-term debt | 59,349 | 58,057 |
Operating lease liabilities | 3,441 | 4,410 |
Accounts payable and accrued expenses | 2,458 | 4,717 |
Total liabilities | 65,248 | 67,184 |
Commitments and contingencies (see Note 10) | ||
Shareholders’ equity | ||
Preferred stock, no par: 5,000 shares authorized; none issued | 0 | 0 |
Common stock, no par: 50,000 shares authorized; 12,658 and 12,673 shares issued, respectively; and 7,309 and 7,546 shares outstanding, respectively | 35,172 | 35,292 |
Treasury stock: 5,349 and 5,127common shares, at cost, respectively | (76,684) | (74,405) |
Retained earnings | 150,550 | 155,499 |
Total shareholders’ equity | 109,038 | 116,386 |
Total liabilities and shareholders’ equity | $ 174,286 | $ 183,570 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2022 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,658,000 | 12,673,000 |
Common stock, shares outstanding | 7,309,000 | 7,546,000 |
Treasury stock, shares | 5,349,000 | 5,127,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue: | ||||
Interest and fee income on finance receivables | $ 12,249 | $ 12,572 | $ 24,313 | $ 25,166 |
Net gain on equity investments | 853 | 0 | 66 | 0 |
Total revenue | 13,102 | 12,572 | 24,379 | 25,166 |
Expenses: | ||||
Marketing | 325 | 373 | 909 | 950 |
Administrative | 6,910 | 7,448 | 15,670 | 15,143 |
Provision for credit losses | 8,906 | 1,395 | 12,550 | 2,125 |
Depreciation and amortization | 116 | 96 | 241 | 172 |
Interest expense | 975 | 1,121 | 1,543 | 2,309 |
Total expenses | 17,232 | 10,433 | 30,913 | 20,699 |
(Loss) income before income taxes | (4,130) | 2,139 | (6,534) | 4,467 |
Income tax benefit (expense) | (958) | 536 | (1,585) | 1,135 |
Net (loss) income | $ (3,172) | $ 1,603 | $ (4,949) | $ 3,332 |
Net (loss) income per share: | ||||
Basic | $ (0.44) | $ 0.21 | $ (0.68) | $ 0.44 |
Diluted | $ (0.44) | $ 0.21 | $ (0.68) | $ 0.44 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Retained Earnings |
Balance at Mar. 31, 2021 | $ 115,222 | $ 35,064 | $ (72,343) | $ 152,501 |
Balance (in shares) at Mar. 31, 2021 | 7,708,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of restricted stock awards (in shares) | 12,000 | |||
Share-based compensation | 87 | $ 87 | ||
Treasury stock | (1,552) | (1,552) | ||
Treasury stock (in shares) | (137,000) | |||
Net (loss) income | 3,332 | 3,332 | ||
Balance at Sep. 30, 2021 | 117,089 | $ 35,151 | (73,895) | 155,833 |
Balance (in shares) at Sep. 30, 2021 | 7,583,000 | |||
Balance at Jun. 30, 2021 | 116,332 | $ 35,110 | (73,008) | 154,230 |
Balance (in shares) at Jun. 30, 2021 | 7,650,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of restricted stock awards (in shares) | 10,000 | |||
Share-based compensation | 41 | $ 41 | ||
Treasury stock | (887) | (887) | ||
Treasury stock (in shares) | (77,000) | |||
Net (loss) income | 1,603 | 1,603 | ||
Balance at Sep. 30, 2021 | 117,089 | $ 35,151 | (73,895) | 155,833 |
Balance (in shares) at Sep. 30, 2021 | 7,583,000 | |||
Balance at Mar. 31, 2022 | 116,386 | $ 35,292 | (74,405) | 155,499 |
Balance (in shares) at Mar. 31, 2022 | 7,546,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of restricted stock awards (in shares) | 11,000 | |||
Cancellation of restricted stock awards | (175) | $ (175) | ||
Cancellation of restricted stock awards (in shares) | (26,000) | |||
Share-based compensation | 55 | $ 55 | ||
Treasury stock | (2,279) | (2,279) | ||
Treasury stock (in shares) | (222,000) | |||
Net (loss) income | (4,949) | (4,949) | ||
Balance at Sep. 30, 2022 | 109,038 | $ 35,172 | (76,684) | 150,550 |
Balance (in shares) at Sep. 30, 2022 | 7,309,000 | |||
Balance at Jun. 30, 2022 | 112,322 | $ 35,143 | (76,543) | 153,722 |
Balance (in shares) at Jun. 30, 2022 | 7,315,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of restricted stock awards (in shares) | 11,000 | |||
Share-based compensation | 29 | $ 29 | ||
Treasury stock | (141) | (141) | ||
Treasury stock (in shares) | (17,000) | |||
Net (loss) income | (3,172) | (3,172) | ||
Balance at Sep. 30, 2022 | $ 109,038 | $ 35,172 | $ (76,684) | $ 150,550 |
Balance (in shares) at Sep. 30, 2022 | 7,309,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net (loss) income | $ (4,949) | $ 3,332 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 241 | 172 |
Amortization of debt issuance costs | 36 | 215 |
Non-cash lease expense | 25 | (98) |
Loss on sale of property and equipment | (66) | (2) |
Realized gains on equity securities | (66) | |
Provision for credit losses | 12,550 | 2,125 |
Amortization of dealer discounts | (3,185) | (3,237) |
Amortization of insurance and fees commissions | (1,397) | (1,344) |
Accretion of purchase price discount | (88) | (116) |
Deferred income taxes | (1,637) | 561 |
Cancellations of restricted stock awards | (175) | |
Share-based compensation | 55 | 88 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | (39) | (120) |
Prepaid expenses and other assets | (43) | 78 |
Accounts payable and accrued expenses | (2,259) | (593) |
Income taxes receivable | 27 | 413 |
Net cash (used in) provided by operating activities | (970) | 1,474 |
Cash flows from investing activities | ||
Purchase and origination of finance receivables | (56,178) | (51,962) |
Principal payments received on finance receivable and proceeds from repossessed assets sales | 54,693 | 59,237 |
Purchase of equity investments | (7,237) | |
Proceeds from sale of equity investments | 7,303 | |
Proceeds from sale of property and equipment | 140 | |
Purchases of property and equipment | 0 | (553) |
Net cash (used in) provided by investing activities | (1,279) | 6,722 |
Cash flows from financing activities | ||
Repayments on credit facility | (13,000) | (16,770) |
Proceeds from the credit facility | 17,500 | |
Repayment of PPP Loan | (3,244) | |
Repurchases of treasury stock | (2,279) | (1,552) |
Net cash (used in) financing activities | (1,023) | (18,322) |
Net (decrease) increase in cash and restricted cash | (3,272) | (10,126) |
Cash and restricted cash at the beginning of period | 4,775 | 32,977 |
Cash and restricted cash at the end of period | 1,503 | 22,851 |
Supplemental disclosures, including noncash activities: | ||
Interest paid | 1,375 | 2,160 |
Income taxes | 24 | 161 |
Transfer of finance receivable to repossessed assets | 4,320 | 2,948 |
Leased assets obtained in exchange for new operating lease liabilities | $ 163 | $ 1,693 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Nicholas Financial, Inc. (“Nicholas Financial – Canada” or the Company) is a Canadian holding company incorporated under the laws of British Columbia with several wholly-owned United States subsidiaries, including Nicholas Financial, Inc., a Florida corporation (“NFI”). The accompanying condensed consolidated balance sheet as of September 30, 2022, and the accompanying unaudited interim consolidated financial statements of Nicholas Financial – Canada, and its wholly-owned subsidiaries (collectively, the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information, with the instructions to Form 10-Q pursuant to the Securities Exchange Act of 1934, as amended, and with Article 8 of Regulation S-X thereunder. Accordingly, they do not include all of the information and notes to the consolidated financial statements required by U.S. GAAP for complete consolidated financial statements, although the Company believes that the disclosures made are adequate to ensure the information is not misleading. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for interim periods are not necessarily indicative of the results that may be expected for the year ending March 31, 2023. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2022 as filed with the Securities and Exchange Commission on June 24, 2022. The March 31, 2022 consolidated balance sheet included herein has been derived from the March 31, 2022 audited consolidated balance sheet included in the aforementioned Form 10-K. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses on finance receivables. Reclassifications In certain instances, amounts reported in prior years’ consolidated financial statements have been reclassified to conform to the current financial statement presentation. Such reclassifications had no effect on previously reported net income (loss). |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Sep. 30, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Interest income on finance receivables is recognized using the interest method. Accrual of interest income on finance receivables is suspended when a loan is contractually delinquent for 61 days or more, or the collateral is repossessed, whichever is earlier. The Company reverses the accrual of interest income when the loan is contractually delinquent 61 days or more. The Company defines a non-performing asset as one that is 61 or more days past due, a Chapter 7 bankruptcy account, or a Chapter 13 bankruptcy account that has not been confirmed by the courts, for which the accrual of interest income is suspended. Upon confirmation of a Chapter 13 bankruptcy account (BK13), the account is immediately charged-off. Upon notification of a Chapter 7 bankruptcy, an account is monitored for collectability. In the event the debtors’ balance is reduced by the bankruptcy court, the Company records a loss equal to the amount of principal balance reduction. The remaining balance is reduced as payments are received. In the event an account is dismissed from bankruptcy, the Company will decide whether to begin repossession proceedings or to allow the customer to make regularly scheduled payments. A dealer discount represents the difference between the finance receivable of a Contract, and the amount of money the Company actually pays for the Contract. The discount negotiated by the Company is a function of the lender, the wholesale value of the vehicle and competition in any given market. In making decisions regarding the purchase of a particular Contract the Company considers the following factors related to the borrower: place and length of residence; current and prior job status; history in making installment payments for automobiles; current income; and credit history. In addition, the Company examines its prior experience with Contracts purchased from the dealer, and the value of the automobile in relation to the purchase price and the term of the Contract. The dealer discount is amortized as an adjustment to yield using the interest method over the life of the loan. The average dealer discount associated with new volume for the three months ended September 30, 2022 and 2021 was 6.4 % and 6.7 %, respectively, in relation to the total amount financed. Unearned insurance and fee commissions consist primarily of commissions received from the sale of ancillary products. These products include automobile warranties, roadside assistance programs, accident and health insurance, credit life insurance, involuntary unemployment insurance coverage, and forced placed automobile insurance. These commissions are amortized over the life of the contract using the effective interest method. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share The Company has granted stock compensation awards with nonforfeitable dividend rights which are considered participating securities. Earnings per share is calculated using the two-class method, as such awards are more dilutive under this method than the treasury stock method. Basic earnings per share is calculated by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period, which excludes the participating securities. The Company's participating securities are non-vested restricted shares which are not required to share losses, and accordingly, are not allocated losses in periods of net loss. Diluted earnings per share includes the dilutive effect of additional potential common shares from stock compensation awards. Earnings per share have been computed based on the following weighted average number of common shares outstanding: Three months ended Six months ended 2022 2021 2022 2021 Numerator Net (loss) income per consolidated statements of income $ ( 3,172 ) $ 1,603 $ ( 4,949 ) $ 3,332 Percentage allocated to shareholders * 100 % 100 % 100 % 100 % Numerator for basic and diluted earnings per share $ ( 3,172 ) $ 1,596 $ ( 4,949 ) $ 3,319 Denominator Denominator for basic earnings per share - weighted-average shares outstanding 7,273 7,620 7,385 7,622 Dilutive effect of stock options — — — — Denominator for diluted earnings per share 7,273 7,620 7,385 7,622 Per share income from continuing operations Basic $ ( 0.44 ) $ 0.21 $ ( 0.68 ) $ 0.44 Diluted ( 0.44 ) 0.21 ( 0.68 ) 0.44 * Basic weighted-average shares outstanding 7,273 7,620 7,385 7,622 Basic weighted-average shares outstanding and unvested restricted stock units expected to vest 7,273 7,652 7,385 7,651 Percentage allocated to shareholders 100 % 100 % 100 % 100 % |
Finance Receivables
Finance Receivables | 6 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Finance Receivables | 4. Finance Receivables Finance Receivables Portfolio, net Finance receivables consist of Contracts and Direct Loans and are detailed as follows: (In thousands) September 30, March 31, Finance receivables $ 175,406 $ 178,786 Accrued interest receivable 2,354 2,315 Unearned dealer discounts ( 6,535 ) ( 6,894 ) Unearned insurance commissions and fees ( 2,313 ) ( 2,446 ) Purchase price discount ( 125 ) ( 212 ) Finance receivables, net of unearned 168,787 171,549 Allowance for credit losses ( 7,091 ) ( 2,949 ) Finance receivables, net $ 161,696 $ 168,600 Contracts and Direct Loans each comprise a portfolio segment. The following tables present selected information on the entire portfolio of the Company: As of September 30, Contract Portfolio 2022 2021 Average APR 22.8 % 22.9 % Average discount 7.2 % 7.5 % Average term (months) 50 50 Number of active contracts 18,059 20,927 As of September 30, Direct Loan Portfolio 2022 2021 Average APR 29.7 % 29.0 % Average term (months) 27 27 Number of active contracts 7,264 5,006 The Company purchases Contracts from automobile dealers at a negotiated price that is less than the original principal amount being financed by the purchaser of the automobile. The Contracts are predominantly for used vehicles. As of September 30, 2022, the average model year of vehicles collateralizing the portfolio was a 2012 vehicle. Direct Loans were typically ranging from $ 500 to $ 15 thousand and were generally secured by a lien on an automobile, watercraft or other permissible tangible personal property. The majority of Direct Loans was originated with current or former customers under the Company’s automobile financing program. The typical Direct Loan represented a better credit risk than the typical Contract due to the customer’s prior payment history with the Company; however, the underlying collateral was “typically” less valuable. In deciding whether to make a loan, the Company considered the individual’s credit history, job stability, income, and impressions created during a personal interview with a Company loan officer. Additionally, because most of the Direct Loans made by the Company to date have been made to current or former customers, the payment history of the borrower was a significant factor in making the loan decision. As of September 30, 2022, loans made by the Company pursuant to its Direct Loan program constituted approximately 16 % of the aggregate principal amount of the Company’s loan portfolio. Changes in the allowance for credit losses for both Contracts and Direct Loans were driven primarily by consideration of the composition of the portfolio, current economic conditions, the estimated net realizable value of the underlying collateral, historical loan loss experience, delinquency, non-performing assets, and bankrupt accounts when determining management’s estimate of probable credit losses and adequacy of the allowance for credit losses. If the allowance for credit losses was determined to be inadequate, then an additional charge to the provision would be recorded to maintain adequate reserves based on management’s evaluation of the risk inherent in the loan portfolio. Additionally, credit loss trends over several reporting periods were utilized in estimating losses and overall portfolio performance. Conversely, the Company could identify abnormalities in the composition of the portfolio, which would indicate the calculation was overstated and management judgement may be required to determine the allowance of credit losses for both Contracts and Direct Loans. Each portfolio segment consists of smaller balance homogeneous loans which are collectively evaluated for impairment. Allowance for Credit Losses The following table sets forth a reconciliation of the changes in the allowance for credit losses on Contracts and Direct Loans for the three months ended September 30, 2022 and 2021 (in thousands): Three months ended September 30, 2022 Six months ended September 30, 2022 Contracts Direct Loans Consolidated Contracts Direct Loans Consolidated Balance at beginning of $ 2,460 $ 1,226 $ 3,686 $ 1,960 $ 989 $ 2,949 Provision for credit losses 7,511 1,395 8,906 10,615 1,935 12,550 Charge-offs ( 6,144 ) ( 645 ) ( 6,789 ) ( 10,190 ) ( 994 ) ( 11,184 ) Recoveries 1,261 27 1,288 2,703 73 2,776 Balance at September 30, $ 5,088 $ 2,003 $ 7,091 $ 5,088 $ 2,003 $ 7,091 Three months ended September 30, 2021 Six months ended September 30, 2021 Contracts Direct Loans Consolidated Contracts Direct Loans Consolidated Balance at beginning of $ 5,268 $ ( 18 ) $ 5,250 $ 6,001 $ 153 $ 6,154 Provision for credit losses 460 935 1,395 1,190 935 2,125 Charge-offs ( 3,128 ) ( 182 ) ( 3,310 ) ( 5,901 ) ( 373 ) ( 6,274 ) Recoveries 1,116 11 1,127 2,426 31 2,457 Balance at September 30, $ 3,716 $ 746 $ 4,462 $ 3,716 $ 746 $ 4,462 The Company uses the trailing twelve-month charge-offs, and applies this calculated percentage to ending finance receivables to calculate estimated probable credit losses for purposes of determining the allowance for credit losses. The Company then takes into consideration the composition of its portfolio, current economic conditions, estimated net realizable value of the underlying collateral, historical loan loss experience, delinquency, non-performing assets, and bankrupt accounts and adjusts the above, if necessary, to determine management’s total estimate of probable credit losses and its assessment of the overall adequacy of the allowance for credit losses. By including recent trends such as delinquency, non-performing assets, and bankruptcy in its determination, management believes that the allowance for credit losses reflects the current trends of incurred losses within the portfolio and is better aligned with the portfolio’s performance indicators. The following table is an assessment of the credit quality by creditworthiness: (In thousands) September 30, 2022 September 30, 2021 Contracts Direct Loans Total Contracts Direct Loans Total Performing accounts $ 140,921 $ 26,550 $ 167,471 $ 153,991 $ 18,646 $ 172,637 Non-performing accounts 6,828 827 7,655 3,949 198 4,147 Total 147,749 27,377 175,126 157,940 18,844 176,784 Chapter 13 bankruptcy 246 34 280 214 15 229 Finance receivables $ 147,995 $ 27,411 $ 175,406 $ 158,154 $ 18,859 $ 177,013 A performing account is defined as an account that is less than 61 days past due. The Company defines an automobile contract as delinquent when more than 10 % of a payment contractually due by a certain date has not been paid immediately by the following due date, which date may have been extended within limits specified in the servicing agreements or as a result of a deferral. The period of delinquency is based on the number of days payments are contractually past due, as extended where applicable. In certain circumstances, the Company will grant obligors one-month payment extensions. The only modification of terms in those circumstances is to advance the obligor’s next due date by one month and extend the maturity date of the receivable. There are no other concessions, such as a reduction in interest rate, or forgiveness of principal or of accrued interest. Accordingly, the Company considers such extensions to be insignificant delays in payments rather than troubled debt restructurings. A non-performing account is defined as an account that is contractually delinquent for 61 days or more or is a Chapter 13 bankruptcy account for which the accrual interest income has been suspended. The Company’s charge-off policy is to charge off an account in the month the contract becomes 121 days contractually delinquent. In the event an account is dismissed from bankruptcy, the Company will decide whether to begin repossession proceedings or to allow the customer to make regularly scheduled payments. The following tables present certain information regarding the delinquency rates experienced by the Company with respect to Contracts and Direct Loans, excluding Chapter 13 bankruptcy accounts: Contracts (In thousands, except percentages) Balance 30 – 59 60 – 89 90 – 119 120+ Total September 30, 2022 $ 147,749 $ 9,769 $ 4,492 $ 2,303 $ 33 $ 16,597 6.61 % 3.04 % 1.56 % 0.02 % 11.23 % March 31, 2022 $ 154,143 $ 7,097 $ 2,936 $ 1,183 $ 48 $ 11,264 4.60 % 1.90 % 0.77 % 0.03 % 7.31 % September 30, 2021 $ 157,940 $ 7,990 $ 2,905 $ 1,024 $ 19 $ 11,938 5.06 % 1.84 % 0.65 % 0.01 % 7.56 % Direct Loans Balance 30 – 59 60 – 89 90 – 119 120+ Total September 30, 2022 $ 27,377 $ 1,169 $ 517 $ 302 $ 8 $ 1,996 4.27 % 1.89 % 1.10 % 0.03 % 7.29 % March 31, 2022 $ 24,376 $ 607 $ 197 $ 77 $ — $ 881 2.49 % 0.81 % 0.32 % — 3.61 % September 30, 2021 $ 18,844 $ 416 $ 145 $ 53 $ — $ 614 2.21 % 0.77 % 0.28 % — 3.26 % |
Credit Facility
Credit Facility | 6 Months Ended |
Sep. 30, 2022 | |
Line of Credit Facility [Abstract] | |
Credit Facility | 5. Credit Facility Wells Fargo Line of Credit On November 5, 2021, NFI and Nicholas Data Services, Inc., a Florida corporation (“NDS” and collectively with NFI, the “Borrowers”), two wholly-owned subsidiaries of Nicholas Financial, Inc. (the “Company”) entered into a senior secured line of credit (the “Line of Credit”) pursuant to a loan and security agreement by and among the Borrowers, Wells Fargo Bank, N.A., as agent, and the lenders that are party thereto (the “Credit Agreement”). The prior line of credit (the "Ares Line of Credit") pursuant to a credit agreement among the Company’s subsidiary NF Funding I, LLC, Ares Agent Services, L.P. and the lenders party thereto was paid off in connection with entering into the Line of Credit. Pursuant to the Credit Agreement, the lenders agreed to extend to the Borrowers a line of credit of up to $ 175 million. The availability of funds under the Line of Credit is generally limited to an advance rate of between 80 % and 85 % of the value of eligible receivables, and outstanding advances under the Line of Credit will accrue interest at a rate equal to the Secured Overnight Financing Rate (SOFR) plus 2.25 %. The commitment period for advances under the Line of Credit is three years (the expiration of that time period, the “Maturity Date”). Pursuant to the Credit Agreement, the Borrowers granted a security interest in substantially all of their assets as collateral for their obligations under the Line of Credit. Furthermore, pursuant to a separate collateral pledge agreement, NDS pledged its equity interest in NFI as additional collateral. The Credit Agreement and the other loan documents contain customary events of default and negative covenants, including but not limited to those governing indebtedness, liens, fundamental changes, investments, and sales of assets. If an event of default occurs, the lenders could increase borrowing costs, restrict the Borrowers’ ability to obtain additional advances under the Line of Credit, accelerate all amounts outstanding under the Line of Credit, enforce their interest against collateral pledged under the Line of Credit or enforce such other rights and remedies as they have under the loan documents or applicable law as secured lenders. If the lenders terminate the Line of Credit following the occurrence of an event of default under the loan documents, or the Borrowers prepay the loan and terminate the Line of Credit prior to the Maturity Date, then the Borrowers are obligated to pay a termination or prepayment fee in an amount equal to a percentage of $ 175 million calculated as 2 % if the termination or prepayment occurs during year one, 1 % if the termination or repayment occurs during year two, and 0.5 % if the termination or prepayment occurs thereafter. As of September 30, 2022, the Company had aggregate outstanding indebtedness under the Line of Credit of $ 59.5 million, compared to $ 55.0 million as of March 31, 2022. Future maturities of debt as of September 30, 2022 were as follows: (in thousands) FY2023 $ — FY2024 — FY2025 59,500 FY2026 — $ 59,500 On October 20, 2022, the Company received a letter from the agent of its lenders, notifying the Company that it is instituting the default rate of interest effective as of August 31, 2022 in connection with an event of default that occurred from failure to comply with the EBITDA Ratio covenant, as defined, for the calendar month ending August 31, 2022. The agreement requires an EBITDA Ratio of not less than 1.50 to 1.0 as of the end of each calendar month. The Company’s EBITDA Ratio declined to 0.33 for the calendar month ending August 31, 2022 and to - 0.70 for the calendar month ending September 30, 2022. In the letter, the lenders expressly reserve all rights and remedies available under agreement. Among those rights and remedies is the ability of the lenders to accelerate all of the Company’s obligations under the loan. The effect of the imposition of the default rate of interest resulted in an additional $ 130 thousand in interest for the quarter ended September 30, 2022. The Company is working with the lender to waive the violations and restructure the facility to remove the default status and application of the default rate going forward. The Company is also negotiating a refinancing opportunity with an alternative source. Note 6. Going Concern Assessment If the lenders were to accelerate the Company’s obligations under the loan agreement, the Company would be unable to immediately meet the obligations and others without undertaking other financing or a capital raise. The lenders' right to accelerate the debt and the Company's ability to find alternative financing on economically favorable terms or at all, depends in part on factors that are beyond the Company’s control and required consideration in management’s going concern assessment for the interim reporting period. Management evaluated the significance of the lenders' right to accelerate the debt, including the likelihood of acceleration based on current discussions and the management’s understanding of the lenders' intentions to restructure the facility. While the EBITDA Ratio was not met, the Debt to Adjusted Tangible Net Worth Ratio has been maintained at a level of approximately 0.6 to one , which is significantly lower than the maximum of 3 to one permitted by the loan agreement. The Company’s tangible net worth reduces credit risk to lenders and supports management’s belief that the Company will continue having access to the lenders' credit. Importantly, based on current discussions, a restructuring of the agreement is expected to exclude the EBITDA Ratio requirement. The lenders are aware of the previously announced branch closures and reductions of workforce including the related charges. In addition, management has strong indications that another lender would be willing to provide ample financing, based on acceptable economic terms, to settle the obligation in the near term. Management’s assessment, which considers the lenders' understood intentions, is that it is probable the current loan agreement will be successfully restructured. Secondarily, based on current negotiations of terms with another lender, management assessed that the Company could obtain other financing in the near term. |
Going Concern Assessment
Going Concern Assessment | 6 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern Assessment | Note 6. Going Concern Assessment If the lenders were to accelerate the Company’s obligations under the loan agreement, the Company would be unable to immediately meet the obligations and others without undertaking other financing or a capital raise. The lenders' right to accelerate the debt and the Company's ability to find alternative financing on economically favorable terms or at all, depends in part on factors that are beyond the Company’s control and required consideration in management’s going concern assessment for the interim reporting period. Management evaluated the significance of the lenders' right to accelerate the debt, including the likelihood of acceleration based on current discussions and the management’s understanding of the lenders' intentions to restructure the facility. While the EBITDA Ratio was not met, the Debt to Adjusted Tangible Net Worth Ratio has been maintained at a level of approximately 0.6 to one , which is significantly lower than the maximum of 3 to one permitted by the loan agreement. The Company’s tangible net worth reduces credit risk to lenders and supports management’s belief that the Company will continue having access to the lenders' credit. Importantly, based on current discussions, a restructuring of the agreement is expected to exclude the EBITDA Ratio requirement. The lenders are aware of the previously announced branch closures and reductions of workforce including the related charges. In addition, management has strong indications that another lender would be willing to provide ample financing, based on acceptable economic terms, to settle the obligation in the near term. Management’s assessment, which considers the lenders' understood intentions, is that it is probable the current loan agreement will be successfully restructured. Secondarily, based on current negotiations of terms with another lender, management assessed that the Company could obtain other financing in the near term. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7. Income Taxes The Company recorded an income tax benefit of approximately $ 958 thousand for the three months ended September 30, 2022 compared to income tax expense of approximately $ 536 thousand for the three months ended September 30, 2021. The Company’s effective tax rate decreased to 23.4 % for the three months ended September 30, 2022 from 25.1 % for the three months ended September 30, 2021. The Company recorded an income tax benefit of approximately $ 1.6 million for the six months ended September 30, 2022 compared to income tax expense of approximately $ 1.1 million for the six months ended September 30, 2021. The Company’s effective tax rate decreased to 24.4 % for the six months ended September 30, 2022 from 25.4 % for the six months ended September 30, 2021. The lower effective tax rate for the three and six months ended September 30, 2021 was attributed to discrete and other non-recurring items. |
Leases
Leases | 6 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 8. Leases The Company maintains lease agreements related to its branch network and for its corporate headquarters. The branch lease agreements range from one to five years and generally contain options to extend from one to three years . The corporate headquarters lease agreement was renewed with a lease maturity date of March 2023 . All of the Company’s lease agreements are considered operating leases. None of the Company’s lease payments are dependent on a rate or index that may change after the commencement date, other than the passage of time. The Company’s lease liability was $ 3.4 million and $ 4.4 million as of September 30, 2022 and March 31, 2022, respectively. This liability is based on the present value of the remaining minimum rental payments using a discount rate that is determined based on the Company’s incremental borrowing rate. The lease asset was $ 3.3 million and $ 4.3 million as of September 30, 2022 and March 31, 2022, respectively. On July 18, 2022, the Company announced its plan to close eleven branches, of which six closures occurred prior to September 30, 2022 and resulted in approximately $230 thousand in lease termination expenses. Future minimum lease payments under non-cancellable operating leases in effect as of September 30, 2022, are as follows: in thousands FY2023 (remaining six months) $ 736 FY2024 1,066 FY2025 819 FY2026 467 FY2027 293 Thereafter $ 481 Total future minimum lease payments 3,862 Present value adjustment ( 421 ) Operating lease liability $ 3,441 The following table reports information about the Company’s lease cost for the three months ended September 30, 2022 (in thousands): Lease cost: Operating lease cost $ 435 Variable lease cost 92 Total lease cost $ 527 The following table reports information about the Company’s lease cost for the three months ended September 30, 2021 (in thousands): Lease cost: Operating lease cost $ 430 Variable lease cost 85 Total lease cost $ 515 The following table reports information about the Company’s lease cost for the six months ended September 30, 2022 (in thousands): Lease cost: Operating lease cost $ 893 Variable lease cost 187 Total lease cost $ 1,080 The following table reports information about the Company’s lease cost for the six months ended September 30, 2021 (in thousands): Lease cost: Operating lease cost $ 820 Variable lease cost 170 Total lease cost $ 990 The following table reports other information about the Company’s leases for the three months ended September 30, 2022 (dollar amounts in thousands): Other Lease Information Operating Lease - Operating Cash Flows (Fixed Payments) $ 457 Operating Lease - Operating Cash Flows (Liability Reduction) $ 369 Weighted Average Lease Term - Operating Leases 3.9 years Weighted Average Discount Rate - Operating Leases 6.5 % The following table reports other information about the Company’s leases for the three months ended September 30, 2021 (dollar amounts in thousands): Other Lease Information Operating Lease - Operating Cash Flows (Fixed Payments) $ 391 Operating Lease - Operating Cash Flows (Liability Reduction) $ 343 Weighted Average Lease Term - Operating Leases 4.3 years Weighted Average Discount Rate - Operating Leases 6.5 % The following table reports other information about the Company’s leases for the six months ended September 30, 2022 (dollar amounts in thousands): Other Lease Information Operating Lease - Operating Cash Flows (Fixed Payments) $ 902 Operating Lease - Operating Cash Flows (Liability Reduction) $ 748 Weighted Average Lease Term - Operating Leases 3.9 years Weighted Average Discount Rate - Operating Leases 6.5 % The following table reports other information about the Company’s leases for the six months ended September 30, 2021 (dollar amounts in thousands): Other Lease Information Operating Lease - Operating Cash Flows (Fixed Payments) $ 776 Operating Lease - Operating Cash Flows (Liability Reduction) $ 678 Weighted Average Lease Term - Operating Leases 3.7 years Weighted Average Discount Rate - Operating Leases 6.5 % |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Note 9. Fair Value Disclosures The Company’s financial instruments consist of cash, finance receivables, repossessed assets, the line of credit, and the note payable. Each of these financial instruments are not carried at fair value. Finance receivables, net, approximates fair value based on the price paid to acquire Contracts. The price paid reflects competitive market interest rates and purchase discounts for the Company’s chosen credit grade in the economic environment. This market is highly liquid as the Company acquires individual loans on a daily basis from dealers. The initial terms of the Contracts generally range from 12 to 72 months. Beginning in December 2017, the maximum initial term of a Contract was reduced to 60 months. The initial terms of the Direct Loans generally range from 12 to 60 months. If liquidated outside of the normal course of business, the amount received may not be the carrying value. Repossessed assets are valued at the lower of the finance receivable balance prior to repossession or the estimated net realizable value of the repossessed asset. The Company estimates the net realizable value using estimated auction wholesale proceeds less costs to sell plus insurance claims outstanding, if any. Based on these market conditions, the fair value of the Line of credit as of September 30, 2022 was estimated to be equal to the book value. The interest rate for the Credit line is a variable rate based on SOFR pricing options. (In thousands) Fair Value Measurement Using Description Level 1 Level 2 Level 3 Fair Carrying Cash and restricted cash: September 30, 2022 $ 1,503 $ - $ - $ 1,503 $ 1,503 March 31, 2022 $ 4,775 $ - $ - $ 4,775 $ 4,775 Finance receivables: September 30, 2022 $ - $ - $ 161,696 $ 161,696 $ 161,696 March 31, 2022 $ - $ - $ 168,600 $ 168,600 $ 168,600 Repossessed assets: September 30, 2022 $ - $ - $ 1,208 $ 1,208 $ 1,208 March 31, 2022 $ - $ - $ 658 $ 658 $ 658 Credit facility: September 30, 2022 $ - $ - $ 59,500 $ 59,500 $ 59,500 March 31, 2022 $ - $ - $ 55,000 $ 55,000 $ 55,000 Note Payable: September 30, 2022 $ - $ - $ - $ - $ - March 31, 2022 $ 3,244 $ - $ - $ 3,244 $ 3,244 The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a nonrecurring basis. There were none at September 30, 2022 and March 31, 2022 and there were no nonrecurring fair value measurements during the three and six months ended September 30, 2022 and 2021. Level 2 assets are financial assets and liabilities that do not have regular market pricing, but whose fair value can be determined based on other data values or market pricing. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. Management has determined that this level to be most appropriate for the Line of credit. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies The Company currently is not a party to any pending legal proceedings other than ordinary routine litigation incidental to its business, none of which, if decided adversely to the Company, would, in the opinion of management, have a material adverse effect on the Company’s financial condition or results of operations. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Note 11. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standard Board (FASB) issued the Accounting Standard Updates (ASU) 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Among other things, the amendments in this ASU require the measurement of all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Companies will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. The ASU also requires additional disclosures related to estimates and judgments used to measure all expected credit losses. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, and early adoption is permitted. The Company is currently evaluating the impact of the adoption of this ASU on the consolidated financial statements and is collecting and analyzing data that will be needed to produce historical inputs into any models created as a result of adopting this ASU. At this time, the Company believes the adoption of this ASU will likely have a material effect and is expected to increase the overall allowance for credit losses. In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848): Facilitating of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions in which the reference London Interbank Offered Rate (LIBOR) or another reference rate is expected to be discontinued as a result of the Reference Rate Reform. This ASU was intended to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. This ASU was effective immediately and is effective through December 31, 2022. The adoption of this ASU did not have a material effect on the Company's consolidated financial statements. The Company does not believe there are any other recently issued accounting standards that have not yet been adopted that will have a material impact on the Company’s consolidated financial statements. |
Stock Plans
Stock Plans | 6 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Stock Plans | Note 12. Stock Plans In May 2019, the Company’s Board of Directors (“Board”) authorized a new stock repurchase program allowing for the repurchase of up to $ 8.0 million of the Company’s outstanding shares of common stock in open market purchases, privately negotiated transactions, or through other structures in accordance with applicable federal securities laws. The authorization was effective immediately. The timing and actual number of repurchases will depend on a variety of factors, including stock price, corporate and regulatory requirements and other market and economic conditions. The Company’s stock repurchase program may be suspended or discontinued at any time. In August 2019, the Company’s Board authorized additional repurchases of up to $ 1.0 million of the Company’s outstanding shares. The following table summarizes treasury share transactions under the Company's stock repurchase program: Three months ended September 30, 2022 2021 Number of Amount Number of Amount Treasury shares at the beginning of period 5,332 $ ( 76,143 ) 5,005 $ ( 73,008 ) Treasury shares purchased 17 ( 541 ) 77 ( 887 ) Treasury shares at the end of period 5,349 $ ( 76,684 ) 5,082 $ ( 73,895 ) Six months ended September 30, 2022 2021 Number of Shares Amount Number of Shares Amount Treasury shares at the beginning of period 5,127 $ ( 74,405 ) 4,945 $ ( 72,343 ) Treasury shares purchased 222 ( 2,279 ) 137 ( 1,552 ) Treasury shares at the end of period 5,349 $ ( 76,684 ) 5,082 $ ( 73,895 ) For the three months ended September 30, 2022, the Company repurchased a total of 17,007 shares of common stock at an aggregate cost of $ 141 thousand and average cost per share of $ 8.30 . |
Note Payable
Note Payable | 6 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Note Payable | Note 13. Note Payable On May 27, 2020, the Company obtained a loan in the amount of approximately $ 3.2 million from a bank in connection with the U.S. Small Business Administration’s (“SBA”) Paycheck Protection Program (the “PPP Loan”). Pursuant to the Paycheck Protection Program, all or a portion of the PPP Loan may be forgiven if the Company uses the proceeds of the PPP Loan for its payroll costs and other expenses in accordance with the requirements of the Paycheck Protection Program. The Company used the proceeds of the PPP Loan for payroll costs and other covered expenses and sought full forgiveness of the PPP Loan. The Company submitted a forgiveness application to Fifth Third Bank, the lender, on December 7, 2020 and submitted supplemental documentation on January 16, 2021. On December 27, 2021 SBA informed the Company that no forgiveness was granted. The Company filed an appeal with SBA on January 5, 2022. On May 6, 2022 the Office of Hearing and Appeals SBA (OHA) rendered a decision to deny the appeal. The Company subsequently repaid the outstanding principal balance of $ 3.2 million plus accrued and unpaid interest of $ 65 thousand on May 23, 2022. |
Restructuring Activities
Restructuring Activities | 6 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Note 14. Restructuring Activities On July 18, 2022, the Company announced its plan to close eleven branches and consolidation of workforce impacting approximately 44 employees. As of September 30, 2022 the Company completed six branch closures, which resulted in approximately $ 230 thousand in lease termination expenses and approximately $ 84 thousand in severance expenses. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15. Subsequent Events As previously announced on Form 8-K filed on October 27, 2022, the Company received a letter from the agent of its lenders, notifying the Company that it is instituting the default rate of interest effective as of August 31, 2022. For further discussions regarding the default see “Note 5. Credit Facility”. In the letter, the lenders expressly reserve all rights and remedies available under the credit agreement. Among those rights and remedies is the ability of the lenders to accelerate all of the Company’s obligations under the loan. The effect of the imposition of the default rate of interest is an additional $ 130 thousand in interest for the quarter ended September 30, 2022 and is estimated to be an additional approximately $ 118 thousand per month while the default rate remains in place. The Company also announced on Form 8-K filed on November 3, 2022 a change in its operating strategy and restructuring plan with the goal of reducing operating expenses and freeing up capital. As part of this plan, the Company would shift from a decentralized to a regionalized business model and has entered into a loan servicing agreement with Westlake Portfolio Management, LLC. While the Company intends to continue Contract purchase and origination activities, albeit on a smaller scale, its servicing, collections and recovery operations will be outsourced to Westlake. The Company will cease originations of Direct Loans. The Company expects that this plan will reduce overhead, streamline operations and reduce compliance risk, while maintaining the Company’s underwriting standards. The Company expects significant annual operating cost savings to substantially exceed the upfront costs associated with the restructuring. The Company further anticipates that execution of this plan will free up capital and permit the Company to allocate excess capital to increase shareholder returns, whether by acquiring loan portfolios or businesses or by investing outside of the Company’s traditional business. The Company believes this plan would address the profitability concerns underlying the above-mentioned event of default. As part of this restructuring plan, the Company announced the closure of 34 of its 36 branches. Consolidation of workforce associated with these closures is expected to impact approximately 173 employees, representing 82 % of the Company workforce. For further information refer to the disclosure under "Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Restructuring and Change in Operating Strategy." |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Nicholas Financial, Inc. (“Nicholas Financial – Canada” or the Company) is a Canadian holding company incorporated under the laws of British Columbia with several wholly-owned United States subsidiaries, including Nicholas Financial, Inc., a Florida corporation (“NFI”). The accompanying condensed consolidated balance sheet as of September 30, 2022, and the accompanying unaudited interim consolidated financial statements of Nicholas Financial – Canada, and its wholly-owned subsidiaries (collectively, the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information, with the instructions to Form 10-Q pursuant to the Securities Exchange Act of 1934, as amended, and with Article 8 of Regulation S-X thereunder. Accordingly, they do not include all of the information and notes to the consolidated financial statements required by U.S. GAAP for complete consolidated financial statements, although the Company believes that the disclosures made are adequate to ensure the information is not misleading. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for interim periods are not necessarily indicative of the results that may be expected for the year ending March 31, 2023. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2022 as filed with the Securities and Exchange Commission on June 24, 2022. The March 31, 2022 consolidated balance sheet included herein has been derived from the March 31, 2022 audited consolidated balance sheet included in the aforementioned Form 10-K. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses on finance receivables. Reclassifications In certain instances, amounts reported in prior years’ consolidated financial statements have been reclassified to conform to the current financial statement presentation. Such reclassifications had no effect on previously reported net income (loss). |
Revenue Recognition | Revenue Recognition Interest income on finance receivables is recognized using the interest method. Accrual of interest income on finance receivables is suspended when a loan is contractually delinquent for 61 days or more, or the collateral is repossessed, whichever is earlier. The Company reverses the accrual of interest income when the loan is contractually delinquent 61 days or more. The Company defines a non-performing asset as one that is 61 or more days past due, a Chapter 7 bankruptcy account, or a Chapter 13 bankruptcy account that has not been confirmed by the courts, for which the accrual of interest income is suspended. Upon confirmation of a Chapter 13 bankruptcy account (BK13), the account is immediately charged-off. Upon notification of a Chapter 7 bankruptcy, an account is monitored for collectability. In the event the debtors’ balance is reduced by the bankruptcy court, the Company records a loss equal to the amount of principal balance reduction. The remaining balance is reduced as payments are received. In the event an account is dismissed from bankruptcy, the Company will decide whether to begin repossession proceedings or to allow the customer to make regularly scheduled payments. A dealer discount represents the difference between the finance receivable of a Contract, and the amount of money the Company actually pays for the Contract. The discount negotiated by the Company is a function of the lender, the wholesale value of the vehicle and competition in any given market. In making decisions regarding the purchase of a particular Contract the Company considers the following factors related to the borrower: place and length of residence; current and prior job status; history in making installment payments for automobiles; current income; and credit history. In addition, the Company examines its prior experience with Contracts purchased from the dealer, and the value of the automobile in relation to the purchase price and the term of the Contract. The dealer discount is amortized as an adjustment to yield using the interest method over the life of the loan. The average dealer discount associated with new volume for the three months ended September 30, 2022 and 2021 was 6.4 % and 6.7 %, respectively, in relation to the total amount financed. Unearned insurance and fee commissions consist primarily of commissions received from the sale of ancillary products. These products include automobile warranties, roadside assistance programs, accident and health insurance, credit life insurance, involuntary unemployment insurance coverage, and forced placed automobile insurance. These commissions are amortized over the life of the contract using the effective interest method. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings (loss) per share | Earnings per share have been computed based on the following weighted average number of common shares outstanding: Three months ended Six months ended 2022 2021 2022 2021 Numerator Net (loss) income per consolidated statements of income $ ( 3,172 ) $ 1,603 $ ( 4,949 ) $ 3,332 Percentage allocated to shareholders * 100 % 100 % 100 % 100 % Numerator for basic and diluted earnings per share $ ( 3,172 ) $ 1,596 $ ( 4,949 ) $ 3,319 Denominator Denominator for basic earnings per share - weighted-average shares outstanding 7,273 7,620 7,385 7,622 Dilutive effect of stock options — — — — Denominator for diluted earnings per share 7,273 7,620 7,385 7,622 Per share income from continuing operations Basic $ ( 0.44 ) $ 0.21 $ ( 0.68 ) $ 0.44 Diluted ( 0.44 ) 0.21 ( 0.68 ) 0.44 * Basic weighted-average shares outstanding 7,273 7,620 7,385 7,622 Basic weighted-average shares outstanding and unvested restricted stock units expected to vest 7,273 7,652 7,385 7,651 Percentage allocated to shareholders 100 % 100 % 100 % 100 % |
Finance Receivables (Tables)
Finance Receivables (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of finance receivables consisting of automobile finance installment Contracts and Direct Loans | Finance receivables consist of Contracts and Direct Loans and are detailed as follows: (In thousands) September 30, March 31, Finance receivables $ 175,406 $ 178,786 Accrued interest receivable 2,354 2,315 Unearned dealer discounts ( 6,535 ) ( 6,894 ) Unearned insurance commissions and fees ( 2,313 ) ( 2,446 ) Purchase price discount ( 125 ) ( 212 ) Finance receivables, net of unearned 168,787 171,549 Allowance for credit losses ( 7,091 ) ( 2,949 ) Finance receivables, net $ 161,696 $ 168,600 |
Schedule of selected information on entire comprise portfolio | Contracts and Direct Loans each comprise a portfolio segment. The following tables present selected information on the entire portfolio of the Company: As of September 30, Contract Portfolio 2022 2021 Average APR 22.8 % 22.9 % Average discount 7.2 % 7.5 % Average term (months) 50 50 Number of active contracts 18,059 20,927 As of September 30, Direct Loan Portfolio 2022 2021 Average APR 29.7 % 29.0 % Average term (months) 27 27 Number of active contracts 7,264 5,006 |
Schedule of reconciliation of the changes in the allowance for credit losses | The following table sets forth a reconciliation of the changes in the allowance for credit losses on Contracts and Direct Loans for the three months ended September 30, 2022 and 2021 (in thousands): Three months ended September 30, 2022 Six months ended September 30, 2022 Contracts Direct Loans Consolidated Contracts Direct Loans Consolidated Balance at beginning of $ 2,460 $ 1,226 $ 3,686 $ 1,960 $ 989 $ 2,949 Provision for credit losses 7,511 1,395 8,906 10,615 1,935 12,550 Charge-offs ( 6,144 ) ( 645 ) ( 6,789 ) ( 10,190 ) ( 994 ) ( 11,184 ) Recoveries 1,261 27 1,288 2,703 73 2,776 Balance at September 30, $ 5,088 $ 2,003 $ 7,091 $ 5,088 $ 2,003 $ 7,091 Three months ended September 30, 2021 Six months ended September 30, 2021 Contracts Direct Loans Consolidated Contracts Direct Loans Consolidated Balance at beginning of $ 5,268 $ ( 18 ) $ 5,250 $ 6,001 $ 153 $ 6,154 Provision for credit losses 460 935 1,395 1,190 935 2,125 Charge-offs ( 3,128 ) ( 182 ) ( 3,310 ) ( 5,901 ) ( 373 ) ( 6,274 ) Recoveries 1,116 11 1,127 2,426 31 2,457 Balance at September 30, $ 3,716 $ 746 $ 4,462 $ 3,716 $ 746 $ 4,462 |
Schedule of an assessment of the credit quality by creditworthiness | The following table is an assessment of the credit quality by creditworthiness: (In thousands) September 30, 2022 September 30, 2021 Contracts Direct Loans Total Contracts Direct Loans Total Performing accounts $ 140,921 $ 26,550 $ 167,471 $ 153,991 $ 18,646 $ 172,637 Non-performing accounts 6,828 827 7,655 3,949 198 4,147 Total 147,749 27,377 175,126 157,940 18,844 176,784 Chapter 13 bankruptcy 246 34 280 214 15 229 Finance receivables $ 147,995 $ 27,411 $ 175,406 $ 158,154 $ 18,859 $ 177,013 |
Schedule of information regarding delinquency rates | The following tables present certain information regarding the delinquency rates experienced by the Company with respect to Contracts and Direct Loans, excluding Chapter 13 bankruptcy accounts: Contracts (In thousands, except percentages) Balance 30 – 59 60 – 89 90 – 119 120+ Total September 30, 2022 $ 147,749 $ 9,769 $ 4,492 $ 2,303 $ 33 $ 16,597 6.61 % 3.04 % 1.56 % 0.02 % 11.23 % March 31, 2022 $ 154,143 $ 7,097 $ 2,936 $ 1,183 $ 48 $ 11,264 4.60 % 1.90 % 0.77 % 0.03 % 7.31 % September 30, 2021 $ 157,940 $ 7,990 $ 2,905 $ 1,024 $ 19 $ 11,938 5.06 % 1.84 % 0.65 % 0.01 % 7.56 % Direct Loans Balance 30 – 59 60 – 89 90 – 119 120+ Total September 30, 2022 $ 27,377 $ 1,169 $ 517 $ 302 $ 8 $ 1,996 4.27 % 1.89 % 1.10 % 0.03 % 7.29 % March 31, 2022 $ 24,376 $ 607 $ 197 $ 77 $ — $ 881 2.49 % 0.81 % 0.32 % — 3.61 % September 30, 2021 $ 18,844 $ 416 $ 145 $ 53 $ — $ 614 2.21 % 0.77 % 0.28 % — 3.26 % |
Credit Facility (Tables)
Credit Facility (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Line of Credit Facility [Abstract] | |
Schedule of Future Maturities of Debt | Future maturities of debt as of September 30, 2022 were as follows: (in thousands) FY2023 $ — FY2024 — FY2025 59,500 FY2026 — $ 59,500 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Summary of future minimum lease payments under non-cancellable operating leases | Future minimum lease payments under non-cancellable operating leases in effect as of September 30, 2022, are as follows: in thousands FY2023 (remaining six months) $ 736 FY2024 1,066 FY2025 819 FY2026 467 FY2027 293 Thereafter $ 481 Total future minimum lease payments 3,862 Present value adjustment ( 421 ) Operating lease liability $ 3,441 |
Schedule of lease cost | The following table reports information about the Company’s lease cost for the three months ended September 30, 2022 (in thousands): Lease cost: Operating lease cost $ 435 Variable lease cost 92 Total lease cost $ 527 The following table reports information about the Company’s lease cost for the three months ended September 30, 2021 (in thousands): Lease cost: Operating lease cost $ 430 Variable lease cost 85 Total lease cost $ 515 The following table reports information about the Company’s lease cost for the six months ended September 30, 2022 (in thousands): Lease cost: Operating lease cost $ 893 Variable lease cost 187 Total lease cost $ 1,080 The following table reports information about the Company’s lease cost for the six months ended September 30, 2021 (in thousands): Lease cost: Operating lease cost $ 820 Variable lease cost 170 Total lease cost $ 990 |
Schedule of other lease information | The following table reports other information about the Company’s leases for the three months ended September 30, 2022 (dollar amounts in thousands): Other Lease Information Operating Lease - Operating Cash Flows (Fixed Payments) $ 457 Operating Lease - Operating Cash Flows (Liability Reduction) $ 369 Weighted Average Lease Term - Operating Leases 3.9 years Weighted Average Discount Rate - Operating Leases 6.5 % The following table reports other information about the Company’s leases for the three months ended September 30, 2021 (dollar amounts in thousands): Other Lease Information Operating Lease - Operating Cash Flows (Fixed Payments) $ 391 Operating Lease - Operating Cash Flows (Liability Reduction) $ 343 Weighted Average Lease Term - Operating Leases 4.3 years Weighted Average Discount Rate - Operating Leases 6.5 % The following table reports other information about the Company’s leases for the six months ended September 30, 2022 (dollar amounts in thousands): Other Lease Information Operating Lease - Operating Cash Flows (Fixed Payments) $ 902 Operating Lease - Operating Cash Flows (Liability Reduction) $ 748 Weighted Average Lease Term - Operating Leases 3.9 years Weighted Average Discount Rate - Operating Leases 6.5 % The following table reports other information about the Company’s leases for the six months ended September 30, 2021 (dollar amounts in thousands): Other Lease Information Operating Lease - Operating Cash Flows (Fixed Payments) $ 776 Operating Lease - Operating Cash Flows (Liability Reduction) $ 678 Weighted Average Lease Term - Operating Leases 3.7 years Weighted Average Discount Rate - Operating Leases 6.5 % |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments not measured at fair value | The interest rate for the Credit line is a variable rate based on SOFR pricing options. (In thousands) Fair Value Measurement Using Description Level 1 Level 2 Level 3 Fair Carrying Cash and restricted cash: September 30, 2022 $ 1,503 $ - $ - $ 1,503 $ 1,503 March 31, 2022 $ 4,775 $ - $ - $ 4,775 $ 4,775 Finance receivables: September 30, 2022 $ - $ - $ 161,696 $ 161,696 $ 161,696 March 31, 2022 $ - $ - $ 168,600 $ 168,600 $ 168,600 Repossessed assets: September 30, 2022 $ - $ - $ 1,208 $ 1,208 $ 1,208 March 31, 2022 $ - $ - $ 658 $ 658 $ 658 Credit facility: September 30, 2022 $ - $ - $ 59,500 $ 59,500 $ 59,500 March 31, 2022 $ - $ - $ 55,000 $ 55,000 $ 55,000 Note Payable: September 30, 2022 $ - $ - $ - $ - $ - March 31, 2022 $ 3,244 $ - $ - $ 3,244 $ 3,244 |
Stock Plans (Tables)
Stock Plans (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Summary of Treasury Share Transactions Under the Company's Stock Repurchase Program | The following table summarizes treasury share transactions under the Company's stock repurchase program: Three months ended September 30, 2022 2021 Number of Amount Number of Amount Treasury shares at the beginning of period 5,332 $ ( 76,143 ) 5,005 $ ( 73,008 ) Treasury shares purchased 17 ( 541 ) 77 ( 887 ) Treasury shares at the end of period 5,349 $ ( 76,684 ) 5,082 $ ( 73,895 ) Six months ended September 30, 2022 2021 Number of Shares Amount Number of Shares Amount Treasury shares at the beginning of period 5,127 $ ( 74,405 ) 4,945 $ ( 72,343 ) Treasury shares purchased 222 ( 2,279 ) 137 ( 1,552 ) Treasury shares at the end of period 5,349 $ ( 76,684 ) 5,082 $ ( 73,895 ) |
Revenue Recognition (Detail Tex
Revenue Recognition (Detail Textuals) | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Interest income accrual on finance receivables suspension condition | Accrual of interest income on finance receivables is suspended when a loan is contractually delinquent for 61 days or more, or the collateral is repossessed, whichever is earlier. The Company reverses the accrual of interest income when the loan is contractually delinquent 61 days or more. | ||
Average dealer discount associated with new volume | 6.40% | 6.70% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator | ||||
Net (loss) income per consolidated statements of income | $ (3,172) | $ 1,603 | $ (4,949) | $ 3,332 |
Percentage allocated to shareholders * | 100% | 100% | 100% | 100% |
Numerator for basic and diluted earnings per share | $ (3,172) | $ 1,596 | $ (4,949) | $ 3,319 |
Denominator | ||||
Denominator for basic earnings per share - weighted-average shares outstanding | 7,273 | 7,620 | 7,385 | 7,622 |
Denominator for diluted earnings per share | 7,273 | 7,620 | 7,385 | 7,622 |
Per share income from continuing operations | ||||
Basic | $ (0.44) | $ 0.21 | $ (0.68) | $ 0.44 |
Diluted | $ (0.44) | $ 0.21 | $ (0.68) | $ 0.44 |
Earnings Per Share (Parenthetic
Earnings Per Share (Parentheticals) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Denominator for basic earnings per share - weighted-average shares outstanding | 7,273 | 7,620 | 7,385 | 7,622 |
Basic weighted-average shares outstanding and unvested restricted stock units expected to vest | 7,273 | 7,652 | 7,385 | 7,651 |
Percentage allocated to shareholders * | 100% | 100% | 100% | 100% |
Finance Receivables - Summary o
Finance Receivables - Summary of contracts and direct loans included in finance receivables (Details) - Finance receivables - Contracts and direct loans - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Accounts Notes And Loans Receivable [Line Items] | ||
Finance receivables | $ 175,406 | $ 178,786 |
Accrued interest receivable | 2,354 | 2,315 |
Unearned dealer discounts | (6,535) | (6,894) |
Unearned insurance commissions and fees | (2,313) | (2,446) |
Purchase price discount | (125) | (212) |
Finance receivables, net of unearned | 168,787 | 171,549 |
Allowance for credit losses | (7,091) | (2,949) |
Finance receivables, net | $ 161,696 | $ 168,600 |
Finance Receivables - Selected
Finance Receivables - Selected information on entire portfolio of Company (Details 1) - Contract | 6 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Contract Portfolio | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Average APR | 22.80% | 22.90% |
Average discount | 7.20% | 7.50% |
Average term (months) | 50 months | 50 months |
Number of active contracts | 18,059 | 20,927 |
Direct Loan Portfolio | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Average APR | 29.70% | 29% |
Average term (months) | 27 months | 27 months |
Number of active contracts | 7,264 | 5,006 |
Finance Receivables (Detail Tex
Finance Receivables (Detail Textuals) - Direct Loans | Sep. 30, 2022 USD ($) |
Accounts Notes And Loans Receivable [Line Items] | |
Percentage of direct loan to total loan portfolio | 16% |
Minimum | |
Accounts Notes And Loans Receivable [Line Items] | |
Finance receivables, net | $ 500 |
Maximum | |
Accounts Notes And Loans Receivable [Line Items] | |
Finance receivables, net | $ 15,000 |
Finance Receivables - Summary_2
Finance Receivables - Summary of reconciliation of changes in allowance for credit losses on contracts (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Provision for credit losses | $ 8,906 | $ 1,395 | $ 12,550 | $ 2,125 |
Finance receivables | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Balance at beginning of period | 3,686 | 5,250 | 2,949 | 6,154 |
Provision for credit losses | 8,906 | 1,395 | 12,550 | 2,125 |
Charge-offs | (6,789) | (3,310) | (11,184) | (6,274) |
Recoveries | 1,288 | 1,127 | 2,776 | 2,457 |
Balance at end of period | 7,091 | 4,462 | 7,091 | 4,462 |
Finance receivables | Contract Portfolio | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Balance at beginning of period | 2,460 | 5,268 | 1,960 | 6,001 |
Provision for credit losses | 7,511 | 460 | 10,615 | 1,190 |
Charge-offs | (6,144) | (3,128) | (10,190) | (5,901) |
Recoveries | 1,261 | 1,116 | 2,703 | 2,426 |
Balance at end of period | 5,088 | 3,716 | 5,088 | 3,716 |
Finance receivables | Direct Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Balance at beginning of period | 1,226 | (18) | 989 | 153 |
Provision for credit losses | 1,395 | 935 | 1,935 | 935 |
Charge-offs | (645) | (182) | (994) | (373) |
Recoveries | 27 | 11 | 73 | 31 |
Balance at end of period | $ 2,003 | $ 746 | $ 2,003 | $ 746 |
Finance Receivables - Assessmen
Finance Receivables - Assessment of credit quality by creditworthiness (Details 3) - Finance receivables - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 |
Accounts Notes And Loans Receivable [Line Items] | |||
Total | $ 175,126 | $ 176,784 | |
Finance receivables | 175,406 | 177,013 | |
Chapter 13 bankruptcy | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Finance receivables | 280 | 229 | |
Direct Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | 27,377 | $ 24,376 | 18,844 |
Finance receivables | 27,411 | 18,859 | |
Direct Loans | Chapter 13 bankruptcy | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Finance receivables | 34 | 15 | |
Performing accounts | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | 167,471 | 172,637 | |
Performing accounts | Direct Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | 26,550 | 18,646 | |
Non-performing accounts | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | 7,655 | 4,147 | |
Non-performing accounts | Direct Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | 827 | 198 | |
Contract Portfolio | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | 147,749 | $ 154,143 | 157,940 |
Finance receivables | 147,995 | 158,154 | |
Contract Portfolio | Chapter 13 bankruptcy | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Finance receivables | 246 | 214 | |
Contract Portfolio | Performing accounts | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | 140,921 | 153,991 | |
Contract Portfolio | Non-performing accounts | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | $ 6,828 | $ 3,949 |
Finance Receivables (Detail T_2
Finance Receivables (Detail Textuals 1) | 6 Months Ended |
Sep. 30, 2022 | |
Accounts Notes And Loans Receivable [Line Items] | |
Maximum criteria for receivable to be a performing account | 61 days |
Percentage of more than payment contractually for delinquent | 10% |
Minimum criteria for receivable to be a non-performing account | 61 days |
Minimum | |
Accounts Notes And Loans Receivable [Line Items] | |
Criteria for receivable to be delinquent account | 121 days |
Finance Receivables - Informati
Finance Receivables - Information regarding delinquency rates with respect to contracts and direct loans (Details 4) - Finance receivables - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 |
Accounts Notes And Loans Receivable [Line Items] | |||
Balance Outstanding | $ 175,126 | $ 176,784 | |
Direct Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Balance Outstanding | 27,377 | $ 24,376 | 18,844 |
Total | $ 1,996 | $ 881 | $ 614 |
Total (in percentage) | 7.29% | 3.61% | 3.26% |
Contract Portfolio | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Balance Outstanding | $ 147,749 | $ 154,143 | $ 157,940 |
Total | $ 16,597 | $ 11,264 | $ 11,938 |
Total (in percentage) | 11.23% | 7.31% | 7.56% |
30 - 59 days | Direct Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | $ 1,169 | $ 607 | $ 416 |
Total (in percentage) | 4.27% | 2.49% | 2.21% |
30 - 59 days | Contract Portfolio | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | $ 9,769 | $ 7,097 | $ 7,990 |
Total (in percentage) | 6.61% | 4.60% | 5.06% |
60 - 89 days | Direct Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | $ 517 | $ 197 | $ 145 |
Total (in percentage) | 1.89% | 0.81% | 0.77% |
60 - 89 days | Contract Portfolio | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | $ 4,492 | $ 2,936 | $ 2,905 |
Total (in percentage) | 3.04% | 1.90% | 1.84% |
90 - 119 days | Direct Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | $ 302 | $ 77 | $ 53 |
Total (in percentage) | 1.10% | 0.32% | 0.28% |
90 - 119 days | Contract Portfolio | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | $ 2,303 | $ 1,183 | $ 1,024 |
Total (in percentage) | 1.56% | 0.77% | 0.65% |
Over 120 days | Direct Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | $ 8 | ||
Total (in percentage) | 0.03% | ||
Over 120 days | Contract Portfolio | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total | $ 33 | $ 48 | $ 19 |
Total (in percentage) | 0.02% | 0.03% | 0.01% |
Credit Facility (Detail Textual
Credit Facility (Detail Textuals) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Nov. 05, 2021 | Aug. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | |
Line Of Credit Facility [Line Items] | ||||
Aggregate outstanding indebtedness | $ 59,500 | |||
EBITDA Ratio | 33% | (70.00%) | ||
Interest Expense, Long-Term Debt, Increase (Decrease) | $ 130 | |||
Minimum | ||||
Line Of Credit Facility [Line Items] | ||||
EBITDA Ratio | 150% | |||
Maximum | ||||
Line Of Credit Facility [Line Items] | ||||
EBITDA Ratio | 100% | |||
Ares Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Aggregate outstanding indebtedness | $ 59,500 | $ 55,000 | ||
Wells Fargo Credit Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility amount | $ 175,000 | |||
Commitment period for advances under Credit Facility | 3 years | |||
Wells Fargo Credit Facility | Secured Overnight Financing Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.25% | |||
Wells Fargo Credit Facility | Year One | ||||
Line Of Credit Facility [Line Items] | ||||
Termination or prepayment fee, percentage | 2% | |||
Wells Fargo Credit Facility | Year Two | ||||
Line Of Credit Facility [Line Items] | ||||
Termination or prepayment fee, percentage | 1% | |||
Wells Fargo Credit Facility | Thereafter | ||||
Line Of Credit Facility [Line Items] | ||||
Termination or prepayment fee, percentage | 0.50% | |||
Wells Fargo Credit Facility | Minimum | ||||
Line Of Credit Facility [Line Items] | ||||
Credit facility, available funds, percentage | 80% | |||
Wells Fargo Credit Facility | Maximum | ||||
Line Of Credit Facility [Line Items] | ||||
Credit facility, available funds, percentage | 85% | |||
Wells Fargo Credit Facility | Credit Agreement [Member] | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility amount | $ 175,000 |
Credit Facility - Schedule of F
Credit Facility - Schedule of Future Maturities of Debt (Detail) $ in Thousands | Sep. 30, 2022 USD ($) |
Long-Term Debt, Fiscal Year Maturity [Abstract] | |
FY2023 | $ 0 |
FY2024 | 0 |
FY2025 | 59,500 |
FY2026 | 0 |
Future maturities of debt | $ 59,500 |
Going Concern Assessment (Detai
Going Concern Assessment (Detail Textuals) | 6 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Debt instrument covenant description | 0.6 to one |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ (958) | $ 536 | $ (1,585) | $ 1,135 |
Increase (decrease) in effective tax rate | 23.40% | 25.10% | 24.40% | 25.40% |
Leases (Detail Textuals)
Leases (Detail Textuals) - USD ($) $ in Thousands | 6 Months Ended | ||
Jul. 18, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | |
Lessee Lease Description [Line Items] | |||
Operating lease, liability | $ 3,441 | $ 4,410 | |
Operating lease, right-of-use asset | $ 3,282 | $ 4,277 | |
Description of company announced, future plan | On July 18, 2022, the Company announced its plan to close eleven branches, of which six closures occurred prior to September 30, 2022 and resulted in approximately $230 thousand in lease termination expenses. | ||
Branch network lease agreement | |||
Lessee Lease Description [Line Items] | |||
Operating lease, existence of option to extend | true | ||
Operating lease minimum term to extend | 1 year | ||
Operating lease maximum term to extend | 3 years | ||
Corporate headquarters lease agreement | |||
Lessee Lease Description [Line Items] | |||
Operating lease renewal with lease maturity date | 2023-03 | ||
Minimum | Branch network lease agreement | |||
Lessee Lease Description [Line Items] | |||
Operating lease, term of contract | 1 year | ||
Maximum | Branch network lease agreement | |||
Lessee Lease Description [Line Items] | |||
Operating lease, term of contract | 5 years |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments under Non-cancellable Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Leases [Abstract] | ||
FY2023 (remaining six months) | $ 736 | |
FY2024 | 1,066 | |
FY2025 | 293 | |
FY2026 | 819 | |
FY2027 | 467 | |
Thereafter | 481 | |
Total future minimum lease payments | 3,862 | |
Present value adjustment | (421) | |
Operating lease liabilities | $ 3,441 | $ 4,410 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lease cost: | ||||
Operating lease cost | $ 435 | $ 430 | $ 893 | $ 820 |
Variable lease cost | 92 | 85 | 187 | 170 |
Total lease cost | $ 527 | $ 515 | $ 1,080 | $ 990 |
Leases - Schedule of Other Leas
Leases - Schedule of Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Lease Information | ||||
Operating Lease - Operating Cash Flows (Fixed Payments) | $ 457 | $ 391 | $ 902 | $ 776 |
Operating Lease - Operating Cash Flows (Liability Reduction) | $ 369 | $ 343 | $ 748 | $ 678 |
Weighted Average Lease Term - Operating Leases | 3 years 10 months 24 days | 4 years 3 months 18 days | 3 years 10 months 24 days | 3 years 8 months 12 days |
Weighted Average Discount Rate - Operating Leases | 6.50% | 6.50% | 6.50% | 6.50% |
Fair Value Disclosures (Detail
Fair Value Disclosures (Detail Textuals) | 1 Months Ended | 6 Months Ended |
Dec. 31, 2017 | Sep. 30, 2022 | |
Contract Portfolio | Minimum | ||
Financial Instruments Not Measured At Fair Value [Line Items] | ||
Initial terms of finance receivables | 12 months | |
Contract Portfolio | Maximum | ||
Financial Instruments Not Measured At Fair Value [Line Items] | ||
Initial terms of finance receivables | 60 months | 72 months |
Direct Loans | Minimum | ||
Financial Instruments Not Measured At Fair Value [Line Items] | ||
Initial terms of finance receivables | 12 months | |
Direct Loans | Maximum | ||
Financial Instruments Not Measured At Fair Value [Line Items] | ||
Initial terms of finance receivables | 60 months |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of financial instruments not measured at fair value (Details 1) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and restricted cash | $ 1,503 | $ 4,775 |
Finance receivables | 161,696 | 168,600 |
Repossessed assets | 1,208 | 658 |
Note Payable | 0 | 3,244 |
Credit facility | 59,500 | 55,000 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and restricted cash | 1,503 | 4,775 |
Finance receivables | 161,696 | 168,600 |
Repossessed assets | 1,208 | 658 |
Note Payable | 0 | 3,244 |
Credit facility | 59,500 | 55,000 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and restricted cash | 1,503 | 4,775 |
Finance receivables | 0 | 0 |
Repossessed assets | 0 | 0 |
Note Payable | 0 | 3,244 |
Credit facility | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and restricted cash | 0 | 0 |
Finance receivables | 0 | 0 |
Repossessed assets | 0 | 0 |
Note Payable | 0 | 0 |
Credit facility | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and restricted cash | 0 | 0 |
Finance receivables | 161,696 | 168,600 |
Repossessed assets | 1,208 | 658 |
Note Payable | 0 | 0 |
Credit facility | $ 59,500 | $ 55,000 |
Variable Interest Entity - Summ
Variable Interest Entity - Summary of Assets and Liabilities Held by VIE (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Mar. 31, 2022 |
Assets | ||
Finance receivables, net | $ 161,696 | $ 168,600 |
Repossessed assets | 1,208 | 658 |
Total assets | 174,286 | 183,570 |
Liabilities | ||
Credit facility | 59,349 | 54,813 |
Accounts payable and accrued expenses | 2,458 | 4,717 |
Total liabilities | $ 65,248 | $ 67,184 |
Stock Plans (Detail Textuals)
Stock Plans (Detail Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Aug. 31, 2019 | May 31, 2019 | |
Equity Class Of Treasury Stock [Line Items] | ||||||
Number of shares repurchased | 17,000 | 77,000 | 222,000 | 137,000 | ||
Aggregate cost of shares repurchased | $ 541,000 | $ 887,000 | $ 2,279,000 | $ 1,552,000 | ||
New Stock Repurchase Program | Common Stock | ||||||
Equity Class Of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 1,000,000 | $ 8,000,000 | ||||
Number of shares repurchased | 17,007 | |||||
Aggregate cost of shares repurchased | $ 141,000 | |||||
Shares repurchased, average cost per share | $ 8.30 |
Stock Plans - Summary of Treasu
Stock Plans - Summary of Treasury Share Transactions Under the Company's Stock Repurchase Program (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | ||||
Treasury shares at the beginning of period, Number of Shares | 5,332 | 5,005 | 5,127 | 4,945 |
Treasury shares purchased, Number of Shares | 17 | 77 | 222 | 137 |
Treasury shares at the end of period, Number of Shares | 5,349 | 5,082 | 5,349 | 5,082 |
Treasury shares at the beginning of period, Amount | $ (76,143) | $ (73,008) | $ (74,405) | $ (72,343) |
Treasury shares purchased, Amount | (541) | (887) | (2,279) | (1,552) |
Treasury shares at the end of period, Amount | $ (76,684) | $ (73,895) | $ (76,684) | $ (73,895) |
Notes Payable (Detail Textuals)
Notes Payable (Detail Textuals) - USD ($) $ in Thousands | May 27, 2020 | May 23, 2022 |
Debt Instrument [Line Items] | ||
Principal amount outstanding | $ 3,200 | |
Accrued and unpaid interest | $ 65 | |
Paycheck Protection Program | Fifth Third Bank | ||
Debt Instrument [Line Items] | ||
Loan obtained | $ 3,200 |
Restructuring Activities (Detai
Restructuring Activities (Detail Textuals) $ in Thousands | 6 Months Ended | |
Sep. 30, 2022 USD ($) | Jul. 18, 2022 Branch Employees | |
Restructuring and Related Activities [Abstract] | ||
Lease termination expenses | $ 230 | |
Number of employees | Employees | 44 | |
Number of branches close | Branch | 11 | |
Severance expenses | $ 84 |
Subsequent Events (Detail Textu
Subsequent Events (Detail Textuals) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 03, 2022 Branch Employees | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jul. 18, 2022 Employees | |
Subsequent Event [Line Items] | ||||
Debt Instrument, Periodic Payment, Interest | $ | $ 118 | $ 130 | ||
Number of employees | Employees | 44 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of Operating branches | Branch | 36 | |||
Closure of branches | Branch | 34 | |||
Number of employees | Employees | 173 | |||
Debt instrument, basis spread on variable rate | 82% |