Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | NICHOLAS FINANCIAL INC | |
Entity Central Index Key | 1,000,045 | |
Trading Symbol | nick | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock Shares Outstanding | 12,490,031 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Assets | ||
Cash | $ 4,520 | $ 1,849 |
Finance receivables, net | 312,655 | 311,837 |
Assets held for resale | 2,483 | 2,148 |
Income taxes receivable | 0 | 593 |
Prepaid expenses and other assets | 975 | 977 |
Property and equipment, net | 1,569 | 1,290 |
Deferred income taxes | 6,715 | 6,615 |
Total assets | 328,917 | 325,309 |
Liabilities and shareholders' equity | ||
Line of credit | 209,000 | 211,000 |
Drafts payable | 2,060 | 1,499 |
Interest rate swap agreements | 223 | 205 |
Accounts payable and accrued expenses | 6,551 | 5,839 |
Deferred revenues | 3,910 | 3,917 |
Income taxes payable | 1,309 | |
Total liabilities | 223,053 | 222,460 |
Shareholders' equity | ||
Preferred stock, no par: 5,000 shares authorized; none issued | ||
Common stock, no par: 50,000 shares authorized; 12,467 and 12,466 shares issued, respectively; and 7,753 shares outstanding | 33,399 | 33,287 |
Treasury stock: 4,714 common shares, at cost | (70,459) | (70,459) |
Retained earnings | 142,924 | 140,021 |
Total shareholders' equity | 105,864 | 102,849 |
Total liabilities and shareholders' equity | $ 328,917 | $ 325,309 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 12,467 | 12,466 |
Common stock, shares outstanding | 7,753 | 7,753 |
Treasury stock, shares | 4,714 | 4,714 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||
Interest and fee income on finance receivables | $ 22,915 | $ 22,025 |
Expenses: | ||
Marketing | 386 | 392 |
Salaries and employee benefits | 5,593 | 5,585 |
Professional Fees | 247 | 448 |
Administrative | 2,564 | 2,351 |
Provision for credit losses | 7,026 | 4,989 |
Depreciation | 131 | 95 |
Interest expense | 2,244 | 2,166 |
Change in fair value of interest rate swap agreements | 18 | 44 |
Total expenses | 18,209 | 16,070 |
Operating income before income taxes | 4,706 | 5,955 |
Income tax expense | 1,803 | 2,285 |
Net income | $ 2,903 | $ 3,670 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.37 | $ 0.48 |
Diluted (in dollars per share) | $ 0.37 | $ 0.47 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 2,903 | $ 3,670 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 131 | 95 |
Gain on sale of property and equipment | (10) | (15) |
Provision for credit losses | 7,026 | 4,989 |
Amortization of dealer discounts | (3,574) | (3,286) |
Deferred income taxes | (109) | (177) |
Share-based compensation | 118 | 130 |
Change in fair value of interest rate swap agreements | 18 | 44 |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | 2 | 176 |
Accounts payable and accrued expenses | 712 | 259 |
Income taxes payable and receivable | 1,902 | 2,450 |
Deferred revenues | (7) | 287 |
Net cash provided by operating activities | 9,112 | 8,622 |
Cash flows from investing activities | ||
Purchase and origination of finance receivables | (37,678) | (48,332) |
Principal payments received | 33,408 | 35,036 |
Increase in assets held for resale | (335) | (366) |
Purchase of property and equipment | (418) | (165) |
Proceeds from sale of property and equipment | 18 | 16 |
Net cash used in investing activities | (5,005) | (13,811) |
Cash flows from financing activities | ||
(Decrease) increase on line of credit | (2,000) | 4,000 |
Change in drafts payable | 561 | (950) |
Payment of debt costs | 0 | (25) |
Expenses related to prior purchase of treasury shares | 0 | (50) |
Proceeds from exercise of stock options | 2 | 54 |
Excess tax benefits from share-based compensation | 1 | 3 |
Net cash (used) provided by financing activities | (1,436) | 3,032 |
Net increase (decrease) in cash | 2,671 | (2,157) |
Cash, beginning of period | 1,849 | 3,388 |
Cash, end of period | 4,520 | $ 1,231 |
Supplemental Disclosure of noncash investing and financing activities: | ||
Tax deficiency from share awards | $ (9) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying consolidated balance sheet as of March 31, 2016, which has been derived from audited financial statements, and the accompanying unaudited interim consolidated financial statements of Nicholas Financial, Inc. (including its subsidiaries, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q pursuant to the Securities and Exchange Act of 1934, as amended in Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes 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 accruals) 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, 2017. It is suggested that these 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, 2016 as filed with the Securities and Exchange Commission on June 14, 2016. The March 31, 2016 consolidated balance sheet included herein has been derived from the March 31, 2016 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 and the fair value of interest rate swap agreements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Jun. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Finance receivables consist of automobile finance installment contracts (“Contracts”) and direct consumer loans (“Direct Loans”). Interest income on finance receivables is recognized using the interest method. Accrual of interest income on finance receivables is suspended when a loan enters bankruptcy status, is contractually delinquent for 60 days or more or the collateral is repossessed, whichever is earlier. Chapter 13 bankruptcy accounts are accounted for under the cost-recovery method. Interest income on Chapter 13 bankruptcy accounts does not resume until all principal amounts are recovered (see Note 4). A dealer discount represents the difference between the finance receivable, net of unearned interest, 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 from which the Company is purchasing the Contract, and the value of the automobile in relation to the purchase price and the term of the Contract. The entire amount of 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 June 30, 2016 and 2015 was 7.15% and 7.54%, respectively. The amount of future unearned income is computed as the product of the Contract rate, the Contract term and the Contract amount. Deferred revenues 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 and forced placed automobile insurance. These commissions are amortized over the life of the contract using the interest method. The Company’s net costs for originating Direct Loans are deferred and recognized as an adjustment to the yield and are amortized over the life of the loan using the interest method. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 30, 2016 | |
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. As such, earnings per share is calculated using the two-class 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. 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 (In thousands, except per 2016 2015 Numerator: Net income per consolidated statements of income $ 2,903 $ 3,670 Less: Allocation of earnings to participating securities (30 ) — Net income allocated to common stock 2,873 $ 3,670 Basic earnings per share computation: Net income allocated to common stock $ 2,873 $ 3,670 Weighted average common shares outstanding, including shares considered participating securities 7,753 7,616 Less: Weighted average participating securities outstanding (81 ) — Weighted average shares of common stock 7,672 7,616 Basic earnings per share $ 0.37 0.48 Diluted earnings per share computation: Net income allocated to common stock $ 2,873 $ 3,670 Undistributed earnings re-allocated to participating securities 0 — Net income allocated to common stock $ 2,873 $ 3,670 Weighted average common shares outstanding for basic earnings per share 7,672 7,616 Incremental shares from stock options 60 127 Weighted average shares and dilutive potential common shares 7,732 7,743 Diluted earnings per share $ 0.37 $ 0.47 Diluted earnings per share do not include the effect of certain stock options as their impact would be anti-dilutive. For the three months ended June 30, 2016 and 2015, potential shares of common stock from stock options totaling 165,000 and 155,000, respectively, were not included in the diluted earnings per share calculation because their effect is anti-dilutive. |
Finance Receivables
Finance Receivables | 3 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Finance Receivables | 4. Finance Receivables Finance receivables consist of automobile finance installment Contracts and Direct Loans and are detailed as follows: (In thousands) June 30, March 31, 2016 2016 Finance receivables, gross contract $ 499,480 $ 498,130 Unearned interest (155,860 ) (155,257 ) Finance receivables, net of unearned interest 343,620 342,873 Unearned dealer discounts (17,365 ) (18,023 ) Finance receivables, net of unearned interest and unearned dealer discounts 326,255 324,850 Allowance for credit losses (13,600 ) (13,013 ) Finance receivables, net $ 312,655 $ 311,837 The terms of the Contracts range from 12 to 72 months and the Direct Loans range from 12 to 61 months. The Contracts and Direct Loans bear a weighted average effective interest rate of 22.60% and 25.72% as of June 30, 2016, respectively and 22.67% and 25.72% as of March 31, 2016, respectively. Finance receivables consist of Contracts and Direct Loans, each of which comprises a portfolio segment. Each portfolio segment consists of smaller balance homogeneous loans which are collectively evaluated for impairment. The following table sets forth a reconciliation of the changes in the allowance for credit losses on Contracts: Three months ended June 30, (In thousands) 2016 2015 Balance at beginning of period $ 12,265 $ 11,325 Current period provision 6,955 4,886 Losses absorbed (6,992 ) (5,522 ) Recoveries 608 835 Balance at end of period $ 12,836 $ 11,524 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 predominately for used vehicles. As of June 30, 2016, the average model year of vehicles collateralizing the portfolio was a 2008 vehicle. The Company utilizes a static pool approach to track portfolio performance. If the allowance for credit losses is determined to be inadequate for a static pool, then an additional charge to income through the provision is used to maintain adequate reserves based on management’s evaluation of the risk inherent in the loan portfolio, the composition of the portfolio, and current economic conditions. Such evaluation, considers among other matters, the estimated net realizable value of the underlying collateral, economic conditions, historical loan loss experience, management’s estimate of probable credit losses and other factors that warrant recognition in providing for an adequate allowance for credit losses. The following table sets forth a reconciliation of the changes in the allowance for credit losses on Direct Loans: Three months ended June 30, (In thousands) 2016 2015 Balance at beginning of period $ 748 $ 703 Current period provision 71 103 Losses absorbed (72 ) (59 ) Recoveries 17 8 Balance at end of period $ 764 $ 755 Direct Loans are originated directly between the Company and the consumer. These loans are typically for amounts ranging from $1,000 to $9,000 and are generally secured by a lien on an automobile, watercraft or other permissible tangible personal property. The majority of Direct Loans are originated with current or former customers under the Company’s automobile financing program. The typical Direct Loan represents a significantly better credit risk than our typical Contract due to the customer’s historical payment history with the Company. In deciding whether or not to make a loan, the Company considers the individual’s credit history, job stability, income and impressions created during a personal interview with a Company loan officer. Additionally, because most of Direct Loans made by the Company to date have been made to borrowers under Contracts previously purchased by the Company, the payment history of the borrower under the Contract is a significant factor in making the loan decision. As of June 30, 2016, loans made by the Company pursuant to its Direct Loan program constituted approximately 2% 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 by current economic conditions and trends over several reporting periods which are useful in estimating future losses and overall portfolio performance. A performing account is defined as an account that is less than 61 days past due. A non-performing account is defined as an account that is contractually delinquent for 61 days or more and the accrual of interest income is suspended. When an account is 120 days contractually delinquent, the account is written off. Upon notification of a Chapter 13 bankruptcy, an account is monitored for collection with other Chapter 13 bankruptcy accounts. In the event the debtors balance has been reduced by the bankruptcy court, the Company will record a loss equal to the amount of principal balance reduction. The remaining balance will be reduced as payments are received by the bankruptcy court. In the event an account is dismissed from bankruptcy, the Company will decide, based on several factors, to begin repossession proceedings or to allow the customer to begin making regularly scheduled payments. The following table is an assessment of the credit quality by creditworthiness: (In thousands) June 30, 2016 June 30, 2015 Contracts Direct Loans Contracts Direct Loans Performing accounts $ 472,424 $ 10,965 $ 456,698 $ 11,313 Non-performing accounts 11,603 97 6,698 59 Total $ 484,027 $ 11,062 $ 463,396 $ 11,372 Chapter 13 bankruptcy accounts 4,350 40 3,958 41 Finance receivables, gross contract $ 488,377 $ 11,102 $ 467,354 $ 11,413 The following tables present certain information regarding the delinquency rates experienced by the Company with respect to Contracts and under its Direct Loans, excluding Chapter 13 bankruptcy accounts: (In thousands) Contracts Gross Balance 31 – 60 days 61 – 90 days Over 90 days Total June 30, 2016 $ 484,027 $ 25,445 $ 8,027 $ 3,576 $ 37,048 0 5.26 % 1.66 % 0.74 % 7.66 % June 30, 2015 $ 463,396 $ 18,879 $ 4,799 $ 1,899 $ 25,577 4.07 % 1.04 % 0.41 % 5.52 % Direct Loans Gross Balance 31 – 60 days 61 – 90 days Over 90 days Total June 30, 2016 $ 11,062 $ 178 $ 55 $ 42 $ 275 0 1.61 % 0.50 % 0.38 % 2.49 % June 30, 2015 $ 11,372 $ 156 $ 35 $ 24 $ 215 1.37 % 0.31 % 0.21 % 1.89 % |
Line of Credit
Line of Credit | 3 Months Ended |
Jun. 30, 2016 | |
Line Of Credit Facility [Abstract] | |
Line of Credit | 5. Line of Credit The Company has a line of credit facility (the “Line”) up to $225.0 million The pricing of the Line, which expires on January 30, 2018, is 300 basis points above 30-day LIBOR with a 1% floor on LIBOR (4.00% at June 30, 2016 and March 31, 2016). Pledged as collateral for this Line are all of the assets of the Company. The outstanding amount of the Line was $209.0 million and $211.0 million as of June 30, 2016 and March 31, 2016, respectively. The amount available under the Line was $16.0 million and $14.0 million as of June 30, 2016 and March 31, 2016, respectively. The facility requires compliance with certain financial ratios and covenants and satisfaction of specified financial tests, including maintenance of asset quality and performance tests. Dividends do not require consent in writing by the agent and majority lenders under the new facility as long as the Company is in compliance with a net income covenant. As of June 30, 2016, the Company was in full compliance with all debt covenants. |
Interest Rate Swap Agreements
Interest Rate Swap Agreements | 3 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Swap Agreements | 6. Interest Rate Swap Agreements The Company utilizes interest rate swap agreements to manage exposure to variability in expected cash flows attributable to interest rate risk. The interest rate swap agreements convert a portion of the floating rate debt to a fixed rate, more closely matching the interest rate characteristics of finance receivables. As of the three months ended June 30, 2016 and 2015, no new contracts were initiated and no contracts matured. The Company currently has two interest rate swap agreements. A June 4, 2012 interest rate swap agreement provides for a five-year interest rate swap in which the Company pays a fixed rate of 1% and receives payments from the counterparty on the 1-month LIBOR rate. This interest rate swap agreement had an effective date of June 13, 2012 and a notional amount of $25.0 million. A July 30, 2012 agreement provides for a five-year interest rate swap in which the Company pays a fixed rate of 0.87% and receives payments from the counterparty on the 1-month LIBOR rate. This interest rate swap agreement had an effective date of August 13, 2012 and a notional amount of $25.0 million. The locations and amounts of losses in income are as follows: Three months ended June 30, (In thousands) 2016 2015 Periodic change in fair value of interest rate swap agreements $ (18 ) $ (44 ) Periodic settlement differentials included in interest expense (63 ) (95 ) Loss recognized in income $ (81 ) $ (139 ) Net realized losses from the interest rate swap agreements were recorded in the interest expense line item of the consolidated statements of income. The following table summarizes the average variable rates received and average fixed rates paid under the swap agreements. Three months ended June 30, 2016 2015 Variable rate received 0.44 % 0.18 % Fixed rate paid 0.94 % 0.94 % |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The provision for income taxes decreased to approximately $1.8 million for the three months ended June 30, 2016 from approximately $2.3 million for the three months ended June 30, 2015. The Company’s effective tax rate decreased to 38.31% for the three months ended June 30, 2016 from 38.36% for the three months ended June 30, 2015. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 8. Fair Value Disclosures The Company measures specific assets and liabilities at fair value, which is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When applicable, the Company utilizes market data or assumptions that market participants would use in pricing the asset or liability under a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs about which little or no market data exists, therefore requiring an entity to develop its own assumptions. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The Company estimates the fair value of interest rate swap agreements based on the estimated net present value of the future cash flows using a forward interest rate yield curve in effect as of the measurement period, adjusted for nonperformance risk, if any, including a quantitative and qualitative evaluation of both the Company’s credit risk and the counterparty’s credit risk. Accordingly, the Company classifies interest rate swap agreements as Level 2. Fair Value Measurement Using Description Level 1 Level 2 Level 3 Fair Value Interest rate swap agreements: June 30, 2016 – liabilities: $ 0 $ (223 ) $ 0 $ (223 ) March 31, 2016 – liabilities: $ — $ (205 ) $ — $ (205 ) Financial Instruments Not Measured at Fair Value The Company’s financial instruments consist of cash, finance receivables and the Line. For each of these financial instruments- the carrying value approximates 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 range from 12 to 72 months. The initial terms of the Direct Loans range from 12 to 60 months. In addition, there have been minimal changes in interest rates and purchase discounts related to these types of loans due to the competitive nature of the current market. If liquidated outside of the normal course of business, the amount received may not be the carrying value. Based on current market conditions, any new or renewed credit facility would contain pricing that approximates the Company’s current Line. Based on these market conditions, the fair value of the Line as of June 30, 2016 was estimated to be equal to the book value. The interest rate for the Line is a variable rate based on LIBOR pricing options. Fair Value Measurement Using (In thousands) Fair Carrying Description Level 1 Level 2 Level 3 Value Value Cash: June 30, 2016 $ 4,520 $ 0 $ 0 $ 4,520 $ 4,520 March 31, 2016 $ 1,849 $ — $ — $ 1,849 $ 1,849 Finance receivables: June 30, 2016 $ 0 $ 0 $ 312,655 $ 312,655 $ 312,655 March 31, 2016 $ — $ — $ 311,837 $ 311,837 $ 311,837 Line of credit: June 30, 2016 $ 0 $ 209,000 $ 0 $ 209,000 $ 209,000 March 31, 2016 $ — $ 211,000 $ — $ 211,000 $ 211,000 Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a nonrecurring basis. The Company does not have any assets or liabilities measured at fair value on a nonrecurring basis as of June 30, 2016 and March 31, 2016. |
Contingencies
Contingencies | 3 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 9. 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. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | 10. Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued the Accounting Standards Update (“ASU”) 2016-13 Financial Instruments—Credit Losses (Topic 326):Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued the ASU 2016-09, “ Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” In February 2016, the FASB issued ASU No. 2016-02, “Leases In January 2016, the FASB issued ASU No. 2016-01, “ Financial Instruments—Recognition and Measurement of Financial Assets and Liabilities In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) 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. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying consolidated balance sheet as of March 31, 2016, which has been derived from audited financial statements, and the accompanying unaudited interim consolidated financial statements of Nicholas Financial, Inc. (including its subsidiaries, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q pursuant to the Securities and Exchange Act of 1934, as amended in Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes 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 accruals) 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, 2017. It is suggested that these 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, 2016 as filed with the Securities and Exchange Commission on June 14, 2016. The March 31, 2016 consolidated balance sheet included herein has been derived from the March 31, 2016 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 and the fair value of interest rate swap agreements. |
Revenue Recognition | 2. Revenue Recognition Finance receivables consist of automobile finance installment contracts (“Contracts”) and direct consumer loans (“Direct Loans”). Interest income on finance receivables is recognized using the interest method. Accrual of interest income on finance receivables is suspended when a loan enters bankruptcy status, is contractually delinquent for 60 days or more or the collateral is repossessed, whichever is earlier. Chapter 13 bankruptcy accounts are accounted for under the cost-recovery method. Interest income on Chapter 13 bankruptcy accounts does not resume until all principal amounts are recovered (see Note 4). A dealer discount represents the difference between the finance receivable, net of unearned interest, 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 from which the Company is purchasing the Contract, and the value of the automobile in relation to the purchase price and the term of the Contract. The entire amount of 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 June 30, 2016 and 2015 was 7.15% and 7.54%, respectively. The amount of future unearned income is computed as the product of the Contract rate, the Contract term and the Contract amount. Deferred revenues 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 and forced placed automobile insurance. These commissions are amortized over the life of the contract using the interest method. The Company’s net costs for originating Direct Loans are deferred and recognized as an adjustment to the yield and are amortized over the life of the loan using the interest method. |
Recently Issued Accounting Standards | 10. Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued the Accounting Standards Update (“ASU”) 2016-13 Financial Instruments—Credit Losses (Topic 326):Measurement of Credit Losses on Financial Instruments In March 2016, the FASB issued the ASU 2016-09, “ Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” In February 2016, the FASB issued ASU No. 2016-02, “Leases In January 2016, the FASB issued ASU No. 2016-01, “ Financial Instruments—Recognition and Measurement of Financial Assets and Liabilities In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | Three months ended (In thousands, except per 2016 2015 Numerator: Net income per consolidated statements of income $ 2,903 $ 3,670 Less: Allocation of earnings to participating securities (30 ) — Net income allocated to common stock 2,873 $ 3,670 Basic earnings per share computation: Net income allocated to common stock $ 2,873 $ 3,670 Weighted average common shares outstanding, including shares considered participating securities 7,753 7,616 Less: Weighted average participating securities outstanding (81 ) — Weighted average shares of common stock 7,672 7,616 Basic earnings per share $ 0.37 0.48 Diluted earnings per share computation: Net income allocated to common stock $ 2,873 $ 3,670 Undistributed earnings re-allocated to participating securities 0 — Net income allocated to common stock $ 2,873 $ 3,670 Weighted average common shares outstanding for basic earnings per share 7,672 7,616 Incremental shares from stock options 60 127 Weighted average shares and dilutive potential common shares 7,732 7,743 Diluted earnings per share $ 0.37 $ 0.47 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of finance receivables consisting of automobile finance installment Contracts and Direct Loans | (In thousands) June 30, March 31, 2016 2016 Finance receivables, gross contract $ 499,480 $ 498,130 Unearned interest (155,860 ) (155,257 ) Finance receivables, net of unearned interest 343,620 342,873 Unearned dealer discounts (17,365 ) (18,023 ) Finance receivables, net of unearned interest and unearned dealer discounts 326,255 324,850 Allowance for credit losses (13,600 ) (13,013 ) Finance receivables, net $ 312,655 $ 311,837 |
Schedule of an assessment of the credit quality by creditworthiness | (In thousands) June 30, 2016 June 30, 2015 Contracts Direct Loans Contracts Direct Loans Performing accounts $ 472,424 $ 10,965 $ 456,698 $ 11,313 Non-performing accounts 11,603 97 6,698 59 Total $ 484,027 $ 11,062 $ 463,396 $ 11,372 Chapter 13 bankruptcy accounts 4,350 40 3,958 41 Finance receivables, gross contract $ 488,377 $ 11,102 $ 467,354 $ 11,413 |
Schedule of information regarding delinquency rates | (In thousands) Contracts Gross Balance 31 – 60 days 61 – 90 days Over 90 days Total June 30, 2016 $ 484,027 $ 25,445 $ 8,027 $ 3,576 $ 37,048 0 5.26 % 1.66 % 0.74 % 7.66 % June 30, 2015 $ 463,396 $ 18,879 $ 4,799 $ 1,899 $ 25,577 4.07 % 1.04 % 0.41 % 5.52 % Direct Loans Gross Balance 31 – 60 days 61 – 90 days Over 90 days Total June 30, 2016 $ 11,062 $ 178 $ 55 $ 42 $ 275 0 1.61 % 0.50 % 0.38 % 2.49 % June 30, 2015 $ 11,372 $ 156 $ 35 $ 24 $ 215 1.37 % 0.31 % 0.21 % 1.89 % |
Contracts | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of reconciliation of the changes in the allowance for credit losses | Three months ended June 30, (In thousands) 2016 2015 Balance at beginning of period $ 12,265 $ 11,325 Current period provision 6,955 4,886 Losses absorbed (6,992 ) (5,522 ) Recoveries 608 835 Balance at end of period $ 12,836 $ 11,524 |
Direct Loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of reconciliation of the changes in the allowance for credit losses | Three months ended June 30, (In thousands) 2016 2015 Balance at beginning of period $ 748 $ 703 Current period provision 71 103 Losses absorbed (72 ) (59 ) Recoveries 17 8 Balance at end of period $ 764 $ 755 |
Interest Rate Swap Agreements (
Interest Rate Swap Agreements (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of locations and amounts of (gains) losses recognized in income | Three months ended June 30, (In thousands) 2016 2015 Periodic change in fair value of interest rate swap agreements $ (18 ) $ (44 ) Periodic settlement differentials included in interest expense (63 ) (95 ) Loss recognized in income $ (81 ) $ (139 ) |
Schedule of variable rates received and average fixed rates paid under the swap agreements | Three months ended June 30, 2016 2015 Variable rate received 0.44 % 0.18 % Fixed rate paid 0.94 % 0.94 % |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities recorded at fair value on a recurring basis | Fair Value Measurement Using Description Level 1 Level 2 Level 3 Fair Value Interest rate swap agreements: June 30, 2016 – liabilities: $ 0 $ (223 ) $ 0 $ (223 ) March 31, 2016 – liabilities: $ — $ (205 ) $ — $ (205 ) |
Schedule of financial instruments not measured at fair value | Fair Value Measurement Using (In thousands) Fair Carrying Description Level 1 Level 2 Level 3 Value Value Cash: June 30, 2016 $ 4,520 $ 0 $ 0 $ 4,520 $ 4,520 March 31, 2016 $ 1,849 $ — $ — $ 1,849 $ 1,849 Finance receivables: June 30, 2016 $ 0 $ 0 $ 312,655 $ 312,655 $ 312,655 March 31, 2016 $ — $ — $ 311,837 $ 311,837 $ 311,837 Line of credit: June 30, 2016 $ 0 $ 209,000 $ 0 $ 209,000 $ 209,000 March 31, 2016 $ — $ 211,000 $ — $ 211,000 $ 211,000 |
Revenue Recognition (Detail Tex
Revenue Recognition (Detail Textuals) | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Deferred Revenue Disclosure [Abstract] | ||
Interest income accrual on finance receivables suspension condition | Accrual of interest income on finance receivables is suspended when a loan enters bankruptcy status, is contractually delinquent for 60 days or more or the collateral is repossessed, whichever is earlier. Chapter 13 bankruptcy accounts are accounted for under the cost-recovery method. | |
Average dealer discount associated with new volume | 7.15% | 7.54% |
Earnings Per Share - Basic and
Earnings Per Share - Basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||
Net income per consolidated statements of income | $ 2,903 | $ 3,670 |
Less: Allocation of earnings to participating securities | (30) | |
Net income allocated to common stock | 2,873 | 3,670 |
Basic earnings per share computation: | ||
Net income allocated to common stock | $ 2,873 | $ 3,670 |
Weighted average common shares outstanding, including shares considered participating securities | 7,753 | 7,616 |
Less: Weighted average participating securities outstanding | (81) | |
Weighted average shares of common stock | 7,672 | 7,616 |
Basic earnings per share (in dollars per share) | $ 0.37 | $ 0.48 |
Diluted earnings per share computation: | ||
Net income allocated to common stock | $ 2,873 | $ 3,670 |
Undistributed earnings re-allocated to participating securities | 0 | |
Net income allocated to common stock | $ 2,873 | $ 3,670 |
Weighted average common shares outstanding for basic earnings per share | 7,672 | 7,616 |
Incremental shares from stock options | 60 | 127 |
Weighted average shares and dilutive potential common shares | 7,732 | 7,743 |
Diluted earnings per share (in dollars per share) | $ 0.37 | $ 0.47 |
Earnings Per Share (Detail Text
Earnings Per Share (Detail Textuals) - shares | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common stock shares not included in diluted earnings per share calculation | 165,000 | 155,000 |
Finance Receivables - Finance r
Finance Receivables - Finance receivables consist of automobile finance installment Contracts and Direct Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables, net | $ 312,655 | $ 311,837 |
Contracts and Direct Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables, gross contract | 499,480 | 498,130 |
Unearned interest | (155,860) | (155,257) |
Finance receivables, net of unearned interest | 343,620 | 342,873 |
Unearned dealer discounts | (17,365) | (18,023) |
Finance receivables, net of unearned interest and unearned dealer discounts | 326,255 | 324,850 |
Allowance for credit losses | (13,600) | (13,013) |
Finance receivables, net | $ 312,655 | $ 311,837 |
Finance Receivables - Summary o
Finance Receivables - Summary of reconciliation of changes in allowance for credit losses on contracts (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Current period provision | $ 7,026 | $ 4,989 |
Contracts | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of period | 12,265 | 11,325 |
Current period provision | 6,955 | 4,886 |
Losses absorbed | (6,992) | (5,522) |
Recoveries | 608 | 835 |
Balance at end of period | $ 12,836 | $ 11,524 |
Finance Receivables - Reconcili
Finance Receivables - Reconciliation of changes in allowance for credit losses on direct loans (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Current period provision | $ 7,026 | $ 4,989 |
Direct Loans | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Balance at beginning of period | 748 | 703 |
Current period provision | 71 | 103 |
Losses absorbed | (72) | (59) |
Recoveries | 17 | 8 |
Balance at end of period | $ 764 | $ 755 |
Finance Receivables - Assessmen
Finance Receivables - Assessment of credit quality by creditworthiness (Details 3) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Contracts | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 484,027 | $ 463,396 |
Chapter 13 bankruptcy accounts | 4,350 | 3,958 |
Finance receivables, gross contract | 488,377 | 467,354 |
Contracts | Performing accounts | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 472,424 | 456,698 |
Contracts | Non-performing accounts | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,603 | 6,698 |
Direct Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,062 | 11,372 |
Chapter 13 bankruptcy accounts | 40 | 41 |
Finance receivables, gross contract | 11,102 | 11,413 |
Direct Loans | Performing accounts | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,965 | 11,313 |
Direct Loans | Non-performing accounts | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 97 | $ 59 |
Finance Receivables - Informati
Finance Receivables - Information regarding delinquency rates with respect to contracts and direct loans (Details 4) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Contracts | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Gross Balance Outstanding | $ 484,027 | $ 463,396 |
Total | $ 37,048 | $ 25,577 |
Total (in percentage) | 7.66% | 5.52% |
Contracts | 31 - 60 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Gross Balance Outstanding | $ 25,445 | $ 18,879 |
Total (in percentage) | 5.26% | 4.07% |
Contracts | 61 - 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Gross Balance Outstanding | $ 8,027 | $ 4,799 |
Total (in percentage) | 1.66% | 1.04% |
Contracts | Over 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Gross Balance Outstanding | $ 3,576 | $ 1,899 |
Total (in percentage) | 0.74% | 0.41% |
Direct Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Gross Balance Outstanding | $ 11,062 | $ 11,372 |
Total | $ 275 | $ 215 |
Total (in percentage) | 2.49% | 1.89% |
Direct Loans | 31 - 60 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Gross Balance Outstanding | $ 178 | $ 156 |
Total (in percentage) | 1.61% | 1.37% |
Direct Loans | 61 - 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Gross Balance Outstanding | $ 55 | $ 35 |
Total (in percentage) | 0.50% | 0.31% |
Direct Loans | Over 90 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Gross Balance Outstanding | $ 42 | $ 24 |
Total (in percentage) | 0.38% | 0.21% |
Finance Receivables (Detail Tex
Finance Receivables (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables, net | $ 312,655 | $ 311,837 |
Contracts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Weighted average effective interest rate | 22.60% | 22.67% |
Contracts | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Initial term of finance receivables | 12 months | |
Contracts | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Initial term of finance receivables | 72 months | |
Direct Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Weighted average effective interest rate | 25.72% | 25.72% |
Percentage of direct loan to aggregate principal amount of loan portfolio | 2.00% | |
Direct Loans | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Initial term of finance receivables | 12 months | |
Finance receivables, net | $ 1,000 | |
Direct Loans | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Initial term of finance receivables | 60 months | |
Finance receivables, net | $ 9,000 |
Finance Receivables (Detail T30
Finance Receivables (Detail Textuals 1) | 3 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Maximum criteria for receivable to be a performing account | 61 days |
Minimum criteria for receivable to be a non-performing account | 61 days or more |
Criteria for receivable to be delinquent account | 120 days |
Line of Credit (Detail Textuals
Line of Credit (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Outstanding amount of line of credit facility | $ 209,000 | $ 211,000 |
Line of credit facility | ||
Line of Credit Facility [Line Items] | ||
Maximum amount of line of credit facility | $ 225,000 | |
Line of credit facility, basis spread on variable rate (in percent) | 3.00% | |
Description of variable rate basis | 30-day LIBOR | |
Line of credit facility, floor rate | 1.00% | |
Interest rate | 4.00% | 4.00% |
Outstanding amount of line of credit facility | $ 209,000 | $ 211,000 |
Amount available under the line of credit | $ 16,000 | $ 14,000 |
Interest Rate Swap Agreements -
Interest Rate Swap Agreements - Summary of locations and amounts of (gains) losses in income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Periodic change in fair value of interest rate swap agreements | $ (18) | $ (44) |
Periodic settlement differentials included in interest expense | (63) | (95) |
Loss recognized in income | $ (81) | $ (139) |
Interest Rate Swap Agreements33
Interest Rate Swap Agreements - Summary of variable rates received and fixed rates paid under swap (Details 1) - Interest Rate Swap | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative [Line Items] | ||
Variable rate received | 0.44% | 0.18% |
Fixed rate paid | 0.94% | 0.94% |
Interest Rate Swap Agreements34
Interest Rate Swap Agreements (Detail Textuals) - Interest Rate Swap $ in Millions | Jun. 04, 2012USD ($) | Jul. 30, 2012USD ($) | Jun. 30, 2016 |
Derivatives, Fair Value [Line Items] | |||
Number of interest rate swap agreements | 2 | ||
Interest rate swap period | 5 years | 5 years | |
Fixed interest rate | 1.00% | 0.87% | |
Description of rate for the variable rate of the interest rate | 1-month LIBOR | 1-month LIBOR | |
Interest rate swap agreements, effective date | Jun. 13, 2012 | Aug. 13, 2012 | |
Derivative notional amount | $ 25 | $ 25 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 1,803 | $ 2,285 |
Effective tax rate | 38.31% | 38.36% |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and liabilities recorded at fair value on recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements - liabilities | $ (223) | $ (205) |
Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements - liabilities | 0 | |
Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements - liabilities | (223) | (205) |
Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements - liabilities | 0 | |
Recurring Basis | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap agreements - liabilities | $ (223) | $ (205) |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of financial instruments not measured at fair value (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | $ 4,520 | $ 1,849 |
Finance receivables | 0 | |
Line of credit | 0 | |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 0 | |
Finance receivables | 0 | |
Line of credit | 209,000 | 211,000 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 0 | |
Finance receivables | 312,655 | 311,837 |
Line of credit | 0 | |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 4,520 | 1,849 |
Finance receivables | 312,655 | 311,837 |
Line of credit | 209,000 | 211,000 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 4,520 | 1,849 |
Finance receivables | 312,655 | 311,837 |
Line of credit | $ 209,000 | $ 211,000 |
Fair Value Disclosures (Detail
Fair Value Disclosures (Detail Textuals) | 3 Months Ended |
Jun. 30, 2016 | |
Contracts | Minimum | |
Financial Instruments Not Measured At Fair Value [Line Items] | |
Initial term of finance receivables | 12 months |
Contracts | Maximum | |
Financial Instruments Not Measured At Fair Value [Line Items] | |
Initial term of finance receivables | 72 months |
Direct Loans | Minimum | |
Financial Instruments Not Measured At Fair Value [Line Items] | |
Initial term of finance receivables | 12 months |
Direct Loans | Maximum | |
Financial Instruments Not Measured At Fair Value [Line Items] | |
Initial term of finance receivables | 60 months |