Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2018 | Feb. 07, 2019 | |
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 | Non-accelerated Filer | |
Entity Common Stock Shares Outstanding | 12,623,652 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Assets | ||
Cash | $ 4,252 | $ 2,626 |
Finance receivables, net | 219,210 | 266,573 |
Assets held for resale | 1,902 | 2,117 |
Income taxes receivable | 2,115 | 1,505 |
Prepaid expenses and other assets | 987 | 906 |
Property and equipment, net | 642 | 843 |
Deferred income taxes | 5,438 | 6,289 |
Total assets | 234,546 | 280,859 |
Liabilities and shareholders' equity | ||
Line of credit | 120,000 | 165,750 |
Drafts payable | 1,345 | 1,672 |
Accounts payable and accrued expenses | 3,610 | 5,000 |
Total liabilities | 124,955 | 172,422 |
Shareholders' equity | ||
Preferred stock, no par: 5,000 shares authorized; none issued | ||
Common stock, no par: 50,000 shares authorized; 12,622 and 12,609 shares issued, respectively; and 7,908 and 7,895 shares outstanding, respectively | 34,621 | 34,564 |
Treasury stock: 4,714 common shares, at cost | (70,459) | (70,459) |
Retained earnings | 145,429 | 144,332 |
Total shareholders' equity | 109,591 | 108,437 |
Total liabilities and shareholders' equity | $ 234,546 | $ 280,859 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
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 | 12,622 | 12,609 |
Common stock, shares outstanding | 7,908 | 7,895 |
Treasury stock, shares | 4,714 | 4,714 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||||
Interest and fee income on finance receivables | $ 16,740 | $ 20,526 | $ 54,903 | $ 64,062 |
Expenses: | ||||
Marketing | 652 | 351 | 1,756 | 1,095 |
Salaries and employee benefits | 4,575 | 4,826 | 14,182 | 14,835 |
Administrative | 2,530 | 2,845 | 8,387 | 8,698 |
Provision for credit losses | 7,870 | 8,989 | 21,670 | 28,887 |
Depreciation | 91 | 116 | 290 | 356 |
Interest expense | 2,303 | 2,585 | 7,228 | 7,500 |
Total operating expenses | 18,021 | 19,712 | 53,513 | 61,371 |
Operating income (loss) before income taxes | (1,281) | 814 | 1,390 | 2,691 |
Income tax expense (benefit) | (376) | 3,712 | 293 | 4,432 |
Net income (loss) | $ (905) | $ (2,898) | $ 1,097 | $ (1,741) |
Earnings (loss) per share: | ||||
Basic (in dollars per share) | $ (0.12) | $ (0.37) | $ 0.14 | $ (0.22) |
Diluted (in dollars per share) | $ (0.12) | $ (0.37) | $ 0.14 | $ (0.22) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | ||
Net income (loss) | $ 1,097 | $ (1,741) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 290 | 356 |
Gain on sale of property and equipment | (38) | (22) |
Provision for credit losses | 21,670 | 28,887 |
Amortization of dealer discounts | (8,140) | (8,670) |
Amortization of commission for products | (1,508) | (1,226) |
Deferred income taxes | 851 | 2,049 |
Share-based compensation | 41 | 240 |
Change in fair value of interest rate swap agreements | 17 | |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | 221 | 149 |
Prepaid expenses and other assets | 319 | 156 |
Accounts payable and accrued expenses | (1,390) | (938) |
Income taxes receivable | (610) | 99 |
Net cash provided by operating activities | 12,803 | 19,356 |
Cash flows from investing activities | ||
Purchase and origination of finance receivables | (56,266) | (86,517) |
Principal payments received | 91,386 | 102,568 |
Decrease (increase) in assets held for resale | 215 | (522) |
Purchase of property and equipment | (113) | (143) |
Proceeds from sale of property and equipment | 62 | 23 |
Net cash provided by investing activities | 35,284 | 15,409 |
Cash flows from financing activities | ||
Repayments on line of credit | (45,750) | (35,000) |
Change in drafts payable | (327) | 335 |
Payment of loan origination fees | (400) | (211) |
Proceeds from exercise of stock options | 16 | 338 |
Net cash used in financing activities | (46,461) | (34,538) |
Net increase in cash | 1,626 | 227 |
Cash, beginning of period | 2,626 | 2,855 |
Cash, end of period | $ 4,252 | $ 3,082 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying consolidated balance sheet as of March 31, 2018, 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, with the instructions to Form 10-Q S-X 10-K 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. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition and Deferred Revenue [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 61 days or more, or the collateral is repossessed, whichever is earlier. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. 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 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 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 December 31, 2018 and 2017 was 8.13% and 6.89%, respectively in relation to the total amount financed. The average dealer discount associated with new volume for the nine-months ended December 31, 2018 and 2017 was 8.29% and 7.23%, respectively. 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 interest method. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Dec. 31, 2018 | |
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 Three months ended (In thousands, except Nine months ended (In thousands, except 2018 2017 2018 2017 Numerator: Net income (loss) $ (905 ) $ (2,898 ) $ 1,097 $ (1,741 ) Less: Allocation of earnings to participating securities 5 40 (10 ) 23 Net income (loss) allocated to common stock $ (900 ) $ (2,858 ) $ 1,087 $ (1,718 ) Basic earnings (loss) per share computation: Net income (loss) allocated to common stock $ (900 ) $ (2,858 ) $ 1,087 $ (1,718 ) Weighted average common shares outstanding, including shares considered participating securities 7,859 7,910 7,855 7,876 Less: Weighted average participating securities outstanding (46 ) (110 ) (68 ) (102 ) Weighted average shares of common stock 7,813 7,800 7,787 7,774 Basic earnings (loss) per share $ (0.12 ) $ (0.37 ) $ 0.14 $ (0.22 ) Diluted earnings (loss) per share computation: Net income (loss) allocated to common stock $ (900 ) $ (2,858 ) $ 1,087 $ (1,718 ) Undistributed earnings re-allocated — — — — Numerator for diluted earnings (loss) per share $ (900 ) $ $ 1,087 $ Weighted average common shares outstanding for basic earnings per share 7,813 7,800 7,787 7,774 Incremental shares from stock options 7 — — — Weighted average shares and dilutive potential common shares 7,820 7,800 7,787 7,774 Diluted earnings (loss) per share $ (0.12 ) $ (0.37 ) $ 0.14 $ (0.22 ) 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 December 31, 2018 and 2017, potential shares of common stock from stock options totaling 35,000 and 157,230, respectively, were not included in the diluted earnings per share calculation because their effect is anti-dilutive. For the nine-months ended December 31, 2018 and 2017, potential shares of common stock from stock options totaling 68,600 and 194,687, respectively, were not included in the diluted earnings per share calculation because their effect is anti-dilutive. |
Finance Receivables
Finance Receivables | 9 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Finance Receivables | 4. Finance Receivables Finance Receivables Portfolio Finance receivables consist of Contracts and Direct Loans and are detailed as follows: (In thousands) December 31, March 31, December 31, Finance receivables $ 250,279 $ 301,155 $ 313,631 Accrued interest receivable 2,421 2,642 3,052 Unearned dealer discounts (10,757 ) (13,655 ) (14,138 ) Unearned insurance and fee commissions (2,758 ) (3,303 ) (3,313 ) Finance receivables, net of unearned 239,185 286,839 299,232 Allowance for credit losses (19,975 ) (20,266 ) (21,187 ) Finance receivables, net $ 219,210 $ 266,573 $ 278,045 Contracts and Direct Loans each comprise a portfolio segment. The following tables present selected information on the entire portfolio of the Company: As of December 31, Contract Portfolio 2018 2017 Average APR 22.68 % 22.21 % Average discount 7.46 % 7.25 % Average term (months) 53 57 Number of active contracts 29,061 33,993 As of December 31, Direct Loan Portfolio 2018 2017 Average APR 25.97 % 25.18 % Average term (months) 27 33 Number of active contracts 2,641 2,718 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 December 31, 2018, the average model year of vehicles collateralizing the portfolio was a 2010 vehicle. Direct Loans are typically for amounts ranging from $500 to $11,000 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 better credit risk than typical Contracts due to the customer’s prior payment history with the Company; however, the underlying collateral is less valuable. In deciding whether 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 the Direct Loans made by the Company to date have been made to current or former customers, the payment history of the borrower is a significant factor in making the loan decision. As of December 31, 2018, loans made by the Company pursuant to its Direct Loan program constituted approximately 3.4% 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 current economic conditions and credit loss trends over several reporting periods which are utilized in estimating future losses and overall portfolio performance. 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 December 31, 2018 and 2017: Three months ended December 31, 2018 Contracts Direct Loans Consolidated Balance at beginning of period $ 18,692 $ 484 $ 19,176 Provision for credit losses 7,743 127 7,870 Charge-offs (7,337 ) (103 ) (7,440 ) Recoveries 359 10 369 Balance at December 31, 2018 $ 19,457 $ 518 $ 19,975 Three months ended December 31, 2017 Contracts Direct Loans Consolidated Balance at beginning of period $ 19,967 $ 782 $ 20,749 Provision for credit losses 8,818 171 8,989 Charge-offs (8,745 ) (172 ) (8,917 ) Recoveries 360 6 366 Balance at December 31, 2017 $ 20,400 $ 787 $ 21,187 The following table sets forth a reconciliation of the changes in the allowance for credit losses on Contracts and Direct Loans for the nine-months ended December 31, 2018 and 2017: Nine months ended December 31, 2018 Contracts Direct Loans Consolidated Balance at beginning of period $ 19,433 $ 833 $ 20,266 Provision for credit losses 21,655 15 21,670 Charge-offs (22,965 ) (357 ) (23,322 ) Recoveries 1,334 27 1,361 Balance at December 31, 2018 $ 19,457 $ 518 $ 19,975 Nine months ended December 31, 2017 Contracts Direct Loans Consolidated Balance at beginning of period $ 16,885 $ 773 $ 17,658 Provision for credit losses 28,498 389 28,887 Charge-offs (26,372 ) (395 ) (26,767 ) Recoveries 1,389 20 1,409 Balance at December 31, 2017 $ 20,400 $ 787 $ 21,187 During the first quarter of the fiscal year ending March 31, 2019, the Company began using the trailing six-month In addition, the Company takes into consideration the composition of the portfolio, current economic conditions, the estimated net realizable value of the underlying collateral, historical loan loss experience, delinquency, non-performing Prior to June 30, 2018, the Company calculated the allowance for credit losses by reference to static pools, which each pool consisted of Contracts purchased during a three-month period for each branch location as management considers these pools to have similar risk characteristics and were considered smaller-balance homogenous loans. The Company analyzed each consolidated static pool at specific points in time to estimate losses that were probable of being incurred as of the reporting date. The Company maintained historical write-off write-off-to The following table is an assessment of the credit quality by creditworthiness: (In thousands) December 31, 2018 December 31, 2017 Contracts Direct Loans Total Contracts Direct Loans Total Performing accounts $ 225,110 $ 8,284 $ 233,394 $ 283,340 $ 8,030 $ 291,370 Non-performing 13,073 186 13,259 18,204 174 18,378 Total 238,183 8,470 246,653 301,544 8,204 309,748 Chapter 13 bankruptcy accounts 3,564 62 3,626 3,843 40 3,883 Finance receivables $ 241,747 $ 8,532 $ 250,279 $ 305,387 $ 8,244 $ 313,631 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 25% of a payment contractually due by a certain date has not been paid by the immediately 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 A non-performing 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: (In thousands, except percentages) Contracts Balance 31 – 60 days 61 – 90 days 91 – 120 days Over 120 Total December 31, 2018 $ 238,183 $ 18,229 $ 6,897 $ 3,760 $ 2,416 $ 31,302 7.65 % 2.90 % 1.58 % 1.01 % 13.14 % December 31, 2017 $ 301,544 $ 22,583 $ 9,413 $ 5,320 $ 3,471 $ 40,787 7.49 % 3.12 % 1.76 % 1.15 % 13.53 % Direct Loans Balance 31 – 60 days 61 – 90 days 91 – 120 days Over 120 Total December 31, 2018 $ 8,470 $ 188 $ 88 $ 30 $ 68 $ 374 2.22 % 1.04 % 0.35 % 0.80 % 4.42 % December 31, 2017 $ 8,204 $ 204 $ 81 $ 26 $ 67 $ 378 2.49 % 0.99 % 0.32 % 0.82 % 4.61 % |
Line of Credit
Line of Credit | 9 Months Ended |
Dec. 31, 2018 | |
Line Of Credit Facility [Abstract] | |
Line of Credit | 5. Line of Credit The Company had a line of credit facility (the “Line of Credit” or the “Line”) up to $225 million during fiscal year 2018. On March 30, 2018, the Company executed Amendment No. 8 to the Second Amended and Restated Loan and Security Agreement, a one-year renewal extending the maturity date to March 31, 2019, reducing the Line of Credit to $200 million, and changing the minimum interest coverage ratio from a quarterly to monthly test. The pricing of the Line of Credit remained at 400 basis points above 30-day LIBOR, with a 1% floor on LIBOR and the beneficial ownership limit remained at 30%. Pledged as collateral for this Line of Credit are all the assets of the Company. The credit agreement requires compliance with certain financial ratios and covenants and satisfaction of specified financial tests, including maintenance of asset quality and performance tests. The Company’s operating results over the past two years provide indicators that the Company may not be able to continue to comply with certain of the required financial ratios, covenants and financial tests prior to the maturity date of the Line of Credit in the absence of an amendment to the corresponding credit agreement or waiver. On November 2, 2018, the Company entered into a Waiver and Amendment No. 9 (“Amendment No. 9”) to the Second Amended and Restated Loan and Security Agreement governing the Line of Credit. Among other things, Amendment No. 9 waived compliance with the minimum interest coverage ratio and minimum loss reserve requirements for the measurement period ending August 31, 2018. On February 12, 2019, the Company entered into a Waiver and Amendment No. 10 (Amendment No. 10) to the Second Amended and Restated Loan and Security Agreement. Among other things, Amendment No. 10: • waived compliance with the minimum interest coverage ratio for the measurement period ending November 30, 2018; and • modifies the minimum interest coverage ratio to 0.44 to 1.0 for measurement periods ending on or after December 31, 2018, 0.20 to 1.0 for the measurement period ending January 31, 2019, and 1.0 to 1.0 for the measurement period ending February 28, 2019 and thereafter; and • reduced the Line of Credit to $140 million. Only after giving effect to this amendment was the Company in compliance with all debt covenants as of December 31, 2018. See Note 10 “Subsequent Events” for further discussion of Amendment No. 10. The Company’s operating results over the past few years continue to provide indicators that the Company may not be able to continue to comply with certain of the required financial ratios, covenants and financial tests in the absence of amendments or waivers with respect to the corresponding credit agreement. Failure to meet any financial ratios, covenants or financial tests could result in the event of default under our Line of Credit. If an event of default occurs under the Line of Credit, the Company’s lenders could increase the Company’s borrowing costs, restrict the ability to obtain additional borrowings under the Line of Credit, accelerate all amounts outstanding, or enforce their interest against collateral pledged under the Line of Credit. There are no assurances that the lenders will approve a renewal or extension of the Line of Credit past the current maturity date of March 31, 2019, or, assuming that they will approve it, that the Line of Credit will not be on terms less favorable than the current agreement. In the event, the Company obtains information that the existing lenders do not intend to extend the relationship, the Company will seek alternative financing. The Company believes it is probable that it will be able to obtain financing from either its existing lenders or from other sources; however, it cannot provide any assurances that it will be successful in replacing the Line of Credit on reasonable terms or at all. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The Company recorded an income tax benefit of approximately $376,000 for the three-months ended December 31, 2018 compared to income tax expense of approximately $3.7 million for the three-months ended December 31, 2017. The Company’s effective tax rate decreased to 29.4% for the three-months ended December 31, 2018 from 456.0% for the three-months ended December 31, 2017. The income tax expense was approximately $293,000 for the nine-months ended December 31, 2018 and was approximately $4.4 million for the nine-months ended December 31, 2017. The Company’s effective tax rate decreased to 21.1% for the nine-months ended December 31, 2018 from 164.7% for the nine- months ended December 31, 2017. The changes in the effective rates were attributable to a reduction in the current period operating income and the Tax Cuts and Jobs Act enacted in the prior year. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 7. 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. The Company’s financial instruments consist of cash, finance receivables, repossessed assets, and the Line of Credit. 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 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 the projected cash value upon liquidation plus insurance claims outstanding, if any. Based on current market conditions, any new or renewed credit facility would be expected to contain pricing that approximates the Company’s current Line of Credit. Based on these market conditions, the fair value of the Line of Credit as of December 31, 2018 was estimated to be equal to the book value. The interest rate for the Line of Credit is a variable rate based on LIBOR pricing options. (In thousands) Fair Value Measurement Using Description Level 1 Level 2 Level 3 Fair Value Carrying Cash: December 31, 2018 $ 4,252 $ — $ — $ 4,252 $ 4,252 March 31, 2018 $ 2,626 $ — $ — $ 2,626 $ 2,626 Finance receivables: December 31, 2018 $ — $ — $ 219,210 $ 219,210 $ 219,210 March 31, 2018 $ — $ — $ 267,401 $ 267,401 $ 266,573 Repossessed assets: December 31, 2018 $ — $ — $ 1,902 $ 1,902 $ 1,902 March 31, 2018 $ — $ — $ 2,117 $ 2,117 $ 2,117 Line of credit: December 31, 2018 $ — $ 120,000 $ — $ 120,000 $ 120,000 March 31, 2018 $ — $ 165,750 $ — $ 165,750 $ 165,750 The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a nonrecurring basis. 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. |
Contingencies
Contingencies | 9 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 8. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 9. Summary of Significant Accounting Policies Reclassifications The Company made certain reclassifications to finance receivables, as a result of which it no longer reports a gross receivable and unearned interest balance. Therefore, the prior fiscal year balance sheet reflects a reclassification, to net the gross receivable and the unearned interest balance. The Company also reclassed the unearned insurance and fee commissions from a liability to net finance receivables, net of unearned discounts and insurance commissions. Net income and shareholders’ equity were not changed. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue ASU 2014-09 by ASU 2014-09 is In May 2017, the FASB issued ASU 2017-09, Compensation In January 2017, the FASB issued ASU 2017-01, Business In August 2016, the FASB issued the Accounting Standards Update (“ASU”) 2016-15 Statement ASU 2016-15 had Recent Accounting Pronouncements In February 2018, the FASB issued Accounting Standards Update (ASU) No. 2018-02, “Income ASU No. 2018-02 permits ASU No. 2018-02 is In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-12 Derivatives In June 2016, the FASB issued the ASU 2016-13 Financial In February 2016, the FASB issued ASU No. 2016-02, “Leases”, ASU 2016-02 is 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. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | 10. Subsequent Event On February 12, 2019, the Company entered into an amendment to its existing loan and security agreement governing the terms and conditions of its Line of Credit. Such amendment: • waives compliance with the minimum interest coverage ratio requirement for the measurement period ending November 30, 2018; • modifies the minimum interest coverage ratio requirement to be 0.44 to 1.0 for the measurement period ending December 31, 2018, and 0.20 to 1.0 for the measurement period ending January 31, 2019, and 1.0 to 1.0 for the measurement period ending February 28, 2019 and thereafter; and • reduced the Line of Credit to $140 million. After giving effect to such amendment, the interest coverage ratio is calculated as of each month end for the three-month period then ended The Company’s obligations under the loan and security agreement are secured by substantially all of the operating assets of the Company. The loan and security agreement contains other events of default and requires the Company to comply with certain other financial ratios and covenants and to satisfy specified financial tests, including maintenance of asset quality and portfolio performance tests. Unless waived by lender, failure to meet any required financial ratios, covenants or financial tests would result in an event of default under the loan and security agreement. If an event of default occurs, theCompany’s lenders could increase borrowing costs, restrict the Company’s ability to obtain additional borrowings under the facility, accelerate all amounts outstanding under the facility, or enforce their interest against collateral pledged under the facility. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated balance sheet as of March 31, 2018, 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, with the instructions to Form 10-Q S-X 10-K 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. |
Revenue Recognition | 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 61 days or more, or the collateral is repossessed, whichever is earlier. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. 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 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 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 December 31, 2018 and 2017 was 8.13% and 6.89%, respectively in relation to the total amount financed. The average dealer discount associated with new volume for the nine-months ended December 31, 2018 and 2017 was 8.29% and 7.23%, respectively. 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 interest method. |
Reclassifications | Reclassifications The Company made certain reclassifications to finance receivables, as a result of which it no longer reports a gross receivable and unearned interest balance. Therefore, the prior fiscal year balance sheet reflects a reclassification, to net the gross receivable and the unearned interest balance. The Company also reclassed the unearned insurance and fee commissions from a liability to net finance receivables, net of unearned discounts and insurance commissions. Net income and shareholders’ equity were not changed. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, “Revenue ASU 2014-09 by ASU 2014-09 is In May 2017, the FASB issued ASU 2017-09, Compensation In January 2017, the FASB issued ASU 2017-01, Business In August 2016, the FASB issued the Accounting Standards Update (“ASU”) 2016-15 Statement ASU 2016-15 had Recent Accounting Pronouncements In February 2018, the FASB issued Accounting Standards Update (ASU) No. 2018-02, “Income ASU No. 2018-02 permits ASU No. 2018-02 is In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-12 Derivatives In June 2016, the FASB issued the ASU 2016-13 Financial In February 2016, the FASB issued ASU No. 2016-02, “Leases”, ASU 2016-02 is 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) | 9 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings (loss) per share | Three months ended (In thousands, except Nine months ended (In thousands, except 2018 2017 2018 2017 Numerator: Net income (loss) $ (905 ) $ (2,898 ) $ 1,097 $ (1,741 ) Less: Allocation of earnings to participating securities 5 40 (10 ) 23 Net income (loss) allocated to common stock $ (900 ) $ (2,858 ) $ 1,087 $ (1,718 ) Basic earnings (loss) per share computation: Net income (loss) allocated to common stock $ (900 ) $ (2,858 ) $ 1,087 $ (1,718 ) Weighted average common shares outstanding, including shares considered participating securities 7,859 7,910 7,855 7,876 Less: Weighted average participating securities outstanding (46 ) (110 ) (68 ) (102 ) Weighted average shares of common stock 7,813 7,800 7,787 7,774 Basic earnings (loss) per share $ (0.12 ) $ (0.37 ) $ 0.14 $ (0.22 ) Diluted earnings (loss) per share computation: Net income (loss) allocated to common stock $ (900 ) $ (2,858 ) $ 1,087 $ (1,718 ) Undistributed earnings re-allocated — — — — Numerator for diluted earnings (loss) per share $ (900 ) $ $ 1,087 $ Weighted average common shares outstanding for basic earnings per share 7,813 7,800 7,787 7,774 Incremental shares from stock options 7 — — — Weighted average shares and dilutive potential common shares 7,820 7,800 7,787 7,774 Diluted earnings (loss) per share $ (0.12 ) $ (0.37 ) $ 0.14 $ (0.22 ) |
Finance Receivables (Tables)
Finance Receivables (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of finance receivables consisting of automobile finance installment Contracts and Direct Loans | (In thousands) December 31, March 31, December 31, Finance receivables $ 250,279 $ 301,155 $ 313,631 Accrued interest receivable 2,421 2,642 3,052 Unearned dealer discounts (10,757 ) (13,655 ) (14,138 ) Unearned insurance and fee commissions (2,758 ) (3,303 ) (3,313 ) Finance receivables, net of unearned 239,185 286,839 299,232 Allowance for credit losses (19,975 ) (20,266 ) (21,187 ) Finance receivables, net $ 219,210 $ 266,573 $ 278,045 |
Schedule of selected information on entire comprise portfolio | As of December 31, Contract Portfolio 2018 2017 Average APR 22.68 % 22.21 % Average discount 7.46 % 7.25 % Average term (months) 53 57 Number of active contracts 29,061 33,993 As of December 31, Direct Loan Portfolio 2018 2017 Average APR 25.97 % 25.18 % Average term (months) 27 33 Number of active contracts 2,641 2,718 |
Schedule of reconciliation of the changes in the allowance for credit losses | Three months ended December 31, 2018 Contracts Direct Loans Consolidated Balance at beginning of period $ 18,692 $ 484 $ 19,176 Provision for credit losses 7,743 127 7,870 Charge-offs (7,337 ) (103 ) (7,440 ) Recoveries 359 10 369 Balance at December 31, 2018 $ 19,457 $ 518 $ 19,975 Three months ended December 31, 2017 Contracts Direct Loans Consolidated Balance at beginning of period $ 19,967 $ 782 $ 20,749 Provision for credit losses 8,818 171 8,989 Charge-offs (8,745 ) (172 ) (8,917 ) Recoveries 360 6 366 Balance at December 31, 2017 $ 20,400 $ 787 $ 21,187 Nine months ended December 31, 2018 Contracts Direct Loans Consolidated Balance at beginning of period $ 19,433 $ 833 $ 20,266 Provision for credit losses 21,655 15 21,670 Charge-offs (22,965 ) (357 ) (23,322 ) Recoveries 1,334 27 1,361 Balance at December 31, 2018 $ 19,457 $ 518 $ 19,975 Nine months ended December 31, 2017 Contracts Direct Loans Consolidated Balance at beginning of period $ 16,885 $ 773 $ 17,658 Provision for credit losses 28,498 389 28,887 Charge-offs (26,372 ) (395 ) (26,767 ) Recoveries 1,389 20 1,409 Balance at December 31, 2017 $ 20,400 $ 787 $ 21,187 |
Schedule of an assessment of the credit quality by creditworthiness | (In thousands) December 31, 2018 December 31, 2017 Contracts Direct Loans Total Contracts Direct Loans Total Performing accounts $ 225,110 $ 8,284 $ 233,394 $ 283,340 $ 8,030 $ 291,370 Non-performing 13,073 186 13,259 18,204 174 18,378 Total 238,183 8,470 246,653 301,544 8,204 309,748 Chapter 13 bankruptcy accounts 3,564 62 3,626 3,843 40 3,883 Finance receivables $ 241,747 $ 8,532 $ 250,279 $ 305,387 $ 8,244 $ 313,631 |
Contract Portfolio | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of information regarding delinquency rates | (In thousands, except percentages) Contracts Balance 31 – 60 days 61 – 90 days 91 – 120 days Over 120 Total December 31, 2018 $ 238,183 $ 18,229 $ 6,897 $ 3,760 $ 2,416 $ 31,302 7.65 % 2.90 % 1.58 % 1.01 % 13.14 % December 31, 2017 $ 301,544 $ 22,583 $ 9,413 $ 5,320 $ 3,471 $ 40,787 7.49 % 3.12 % 1.76 % 1.15 % 13.53 % |
Direct Loan Portfolio | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of information regarding delinquency rates | Direct Loans Balance 31 – 60 days 61 – 90 days 91 – 120 days Over 120 Total December 31, 2018 $ 8,470 $ 188 $ 88 $ 30 $ 68 $ 374 2.22 % 1.04 % 0.35 % 0.80 % 4.42 % December 31, 2017 $ 8,204 $ 204 $ 81 $ 26 $ 67 $ 378 2.49 % 0.99 % 0.32 % 0.82 % 4.61 % |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments not measured at fair value | (In thousands) Fair Value Measurement Using Description Level 1 Level 2 Level 3 Fair Value Carrying Cash: December 31, 2018 $ 4,252 $ — $ — $ 4,252 $ 4,252 March 31, 2018 $ 2,626 $ — $ — $ 2,626 $ 2,626 Finance receivables: December 31, 2018 $ — $ — $ 219,210 $ 219,210 $ 219,210 March 31, 2018 $ — $ — $ 267,401 $ 267,401 $ 266,573 Repossessed assets: December 31, 2018 $ — $ — $ 1,902 $ 1,902 $ 1,902 March 31, 2018 $ — $ — $ 2,117 $ 2,117 $ 2,117 Line of credit: December 31, 2018 $ — $ 120,000 $ — $ 120,000 $ 120,000 March 31, 2018 $ — $ 165,750 $ — $ 165,750 $ 165,750 |
Revenue Recognition (Detail Tex
Revenue Recognition (Detail Textuals) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 enters bankruptcy status, is contractually delinquent for 61 days or more, or the collateral is repossessed, whichever is earlier. We reverse finance charge amounts previously accrued upon suspension of accrual of finance charges. Chapter 13 bankruptcy accounts are accounted for under the cost-recovery method. | |||
Average dealer discount associated with new volume | 8.13% | 6.89% | 8.29% | 7.23% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | ||||
Net income (loss) | $ (905) | $ (2,898) | $ 1,097 | $ (1,741) |
Less: Allocation of earnings to participating securities | 5 | 40 | (10) | 23 |
Net income (loss) allocated to common stock | (900) | (2,858) | 1,087 | (1,718) |
Basic earnings (loss) per share computation: | ||||
Net income (loss) allocated to common stock | $ (900) | $ (2,858) | $ 1,087 | $ (1,718) |
Weighted average common shares outstanding, including shares considered participating securities | 7,859 | 7,910 | 7,855 | 7,876 |
Less: Weighted average participating securities outstanding | (46) | (110) | (68) | (102) |
Weighted average shares of common stock | 7,813 | 7,800 | 7,787 | 7,774 |
Basic earnings (loss) per share (in dollars per share) | $ (0.12) | $ (0.37) | $ 0.14 | $ (0.22) |
Diluted earnings (loss) per share computation: | ||||
Net income (loss) allocated to common stock | $ (900) | $ (2,858) | $ 1,087 | $ (1,718) |
Undistributed earnings re-allocated to participating securities | 0 | 0 | 0 | 0 |
Numerator for diluted earnings (loss) per share | $ (900) | $ (2,858) | $ 1,087 | $ (1,718) |
Weighted average common shares outstanding for basic earnings per share | 7,813 | 7,800 | 7,787 | 7,774 |
Incremental shares from stock options | 7 | 0 | 0 | 0 |
Weighted average shares and dilutive potential common shares | 7,820 | 7,800 | 7,787 | 7,774 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.12) | $ (0.37) | $ 0.14 | $ (0.22) |
Earnings Per Share (Detail Text
Earnings Per Share (Detail Textuals) - shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potential common stock shares not included in diluted earnings per share calculation | 35,000 | 157,230 | 68,600 | 194,687 |
Finance Receivables - Summary o
Finance Receivables - Summary of contracts included in finance receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Mar. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivables, net | $ 219,210 | $ 266,573 | ||||
Finance receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses | (19,975) | $ (19,176) | (20,266) | $ (21,187) | $ (20,749) | $ (17,658) |
Finance receivables | Contracts and direct loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivables | 250,279 | 301,155 | 313,631 | |||
Accrued interest receivable | 2,421 | 2,642 | 3,052 | |||
Unearned dealer discounts | (10,757) | (13,655) | (14,138) | |||
Unearned insurance and fee commissions | (2,758) | (3,303) | (3,313) | |||
Finance receivables, net of unearned | 239,185 | 286,839 | 299,232 | |||
Allowance for credit losses | (19,975) | (20,266) | (21,187) | |||
Finance receivables, net | $ 219,210 | $ 266,573 | $ 278,045 |
Finance Receivables - Selected
Finance Receivables - Selected information on entire portfolio of Company (Details 1) - Contract | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average APR | 22.68% | 22.21% |
Average discount | 7.46% | 7.25% |
Average term (months) | 53 months | 57 months |
Number of active contracts | 29,061 | 33,993 |
Direct Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average APR | 25.97% | 25.18% |
Average term (months) | 27 months | 33 months |
Number of active contracts | 2,641 | 2,718 |
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 | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Provision for credit losses | $ 7,870 | $ 8,989 | $ 21,670 | $ 28,887 |
Finance receivables | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 19,176 | 20,749 | 20,266 | 17,658 |
Provision for credit losses | 7,870 | 8,989 | 21,670 | 28,887 |
Charge-offs | (7,440) | (8,917) | (23,322) | (26,767) |
Recoveries | 369 | 366 | 1,361 | 1,409 |
Balance at end of period | 19,975 | 21,187 | 19,975 | 21,187 |
Finance receivables | Contract Portfolio | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 18,692 | 19,967 | 19,433 | 16,885 |
Provision for credit losses | 7,743 | 8,818 | 21,655 | 28,498 |
Charge-offs | (7,337) | (8,745) | (22,965) | (26,372) |
Recoveries | 359 | 360 | 1,334 | 1,389 |
Balance at end of period | 19,457 | 20,400 | 19,457 | 20,400 |
Finance receivables | Direct Loans | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance at beginning of period | 484 | 782 | 833 | 773 |
Provision for credit losses | 127 | 171 | 15 | 389 |
Charge-offs | (103) | (172) | (357) | (395) |
Recoveries | 10 | 6 | 27 | 20 |
Balance at end of period | $ 518 | $ 787 | $ 518 | $ 787 |
Finance Receivables - Assessmen
Finance Receivables - Assessment of credit quality by creditworthiness (Details 3) - Finance receivables - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 246,653 | $ 309,748 |
Finance receivables | 250,279 | 313,631 |
Performing accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 233,394 | 291,370 |
Non-performing accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 13,259 | 18,378 |
Chapter 13 bankruptcy accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 3,626 | 3,883 |
Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 238,183 | 301,544 |
Finance receivables | 241,747 | 305,387 |
Contract Portfolio | Performing accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 225,110 | 283,340 |
Contract Portfolio | Non-performing accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 13,073 | 18,204 |
Contract Portfolio | Chapter 13 bankruptcy accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 3,564 | 3,843 |
Direct Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 8,470 | 8,204 |
Finance receivables | 8,532 | 8,244 |
Direct Loans | Performing accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 8,284 | 8,030 |
Direct Loans | Non-performing accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 186 | 174 |
Direct Loans | Chapter 13 bankruptcy accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 62 | $ 40 |
Finance Receivables - Informati
Finance Receivables - Information regarding delinquency rates with respect to contracts and direct loans (Details 4) - Finance receivables - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance Outstanding | $ 246,653 | $ 309,748 |
Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance Outstanding | 238,183 | 301,544 |
Total | $ 31,302 | $ 40,787 |
Total (in percentage) | 13.14% | 13.53% |
Direct Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance Outstanding | $ 8,470 | $ 8,204 |
Total | $ 374 | $ 378 |
Total (in percentage) | 4.42% | 4.61% |
31 - 60 days | Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 18,229 | $ 22,583 |
Total (in percentage) | 7.65% | 7.49% |
31 - 60 days | Direct Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 188 | $ 204 |
Total (in percentage) | 2.22% | 2.49% |
61 - 90 days | Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 6,897 | $ 9,413 |
Total (in percentage) | 2.90% | 3.12% |
61 - 90 days | Direct Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 88 | $ 81 |
Total (in percentage) | 1.04% | 0.99% |
Over 90 days | Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 3,760 | $ 5,320 |
Total (in percentage) | 1.58% | 1.76% |
Over 90 days | Direct Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 30 | $ 26 |
Total (in percentage) | 0.35% | 0.32% |
Over 120 days | Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 2,416 | $ 3,471 |
Total (in percentage) | 1.01% | 1.15% |
Over 120 days | Direct Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 68 | $ 67 |
Total (in percentage) | 0.80% | 0.82% |
Finance Receivables (Detail Tex
Finance Receivables (Detail Textuals) - USD ($) | 9 Months Ended | |
Dec. 31, 2018 | Mar. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables, net | $ 219,210,000 | $ 266,573,000 |
Period for maintaining historical write off information with respect to static pool | 10 years | |
Percentage of liquidation level assist in determining allowance for credit losses for 1st snapshot | 20.00% | |
Percentage of liquidation level assist in determining allowance for credit losses for 2nd snapshot | 40.00% | |
Percentage of liquidation level assist in determining allowance for credit losses for 3rd snapshot | 60.00% | |
Percentage of liquidation level assist in determining allowance for credit losses in 4th snapshot | 80.00% | |
Percentage of liquidation level assist in determining allowance for credit losses in 5th snapshot | 100.00% | |
Finance receivables | Direct Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of direct loan to total loan portfolio | 3.40% | |
Finance receivables | Direct Loans | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables, net | $ 500 | |
Finance receivables | Direct Loans | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables, net | $ 11,000 |
Finance Receivables (Detail T_2
Finance Receivables (Detail Textuals 1) - USD ($) | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Maximum criteria for receivable to be a performing account | 61 days | |
Percentage of more than payment contractually for delinquent | 25.00% | |
Minimum criteria for receivable to be a non-performing account | 61 days | |
Criteria for receivable to be delinquent account | 180 days | |
Troubled debt restructuring allowance for credit losses | $ 774,000 | $ 0 |
Line of Credit (Detail Textuals
Line of Credit (Detail Textuals) - Line of credit facility - USD ($) $ in Millions | Feb. 12, 2019 | Dec. 31, 2018 | Mar. 30, 2018 |
Line of Credit Facility [Line Items] | |||
Line of credit facility amount | $ 225 | $ 200 | |
Maturity date | Mar. 31, 2019 | ||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | ||
Debt instrument description of variable rate basis | 30-day LIBOR | ||
Line of credit facility, floor rate | 1.00% | ||
Increased the beneficial ownership limit | 30.00% | ||
Subsequent event | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||
Debt instrument description of variable rate basis | LIBOR plus 4.0 | ||
Interest coverage ratio description | The minimum interest coverage ratio requirement to be 0.44 to 1.0 for the measurement period ending December 31, 2018, and 0.20 to 1.0 for the measurement period ending January 31, 2019, and 1.0 to 1.0 for the measurement period ending February 28, 2019 and thereafter | ||
Aggregate amount available under the line of credit | $ 140 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (376) | $ 3,712 | $ 293 | $ 4,432 |
Decrease in effective tax rate | 29.40% | 456.00% | 21.10% | 164.70% |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of financial instruments not measured at fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | $ 4,252 | $ 2,626 |
Finance receivables | 219,210 | 267,401 |
Repossessed assets | 1,902 | 2,117 |
Line of credit | 120,000 | 165,750 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 4,252 | 2,626 |
Finance receivables | 219,210 | 266,573 |
Repossessed assets | 1,902 | 2,117 |
Line of credit | 120,000 | 165,750 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 4,252 | 2,626 |
Finance receivables | 0 | 0 |
Repossessed assets | 0 | 0 |
Line of credit | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 0 | 0 |
Finance receivables | 0 | 0 |
Repossessed assets | 0 | 0 |
Line of credit | 120,000 | 165,750 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash | 0 | 0 |
Finance receivables | 219,210 | 267,401 |
Repossessed assets | 1,902 | 2,117 |
Line of credit | $ 0 | $ 0 |
Fair Value Disclosures (Detail
Fair Value Disclosures (Detail Textuals) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 72 months | 60 months |
Direct Loan Portfolio | Minimum | ||
Financial Instruments Not Measured At Fair Value [Line Items] | ||
Initial terms of finance receivables | 12 months | |
Direct Loan Portfolio | Maximum | ||
Financial Instruments Not Measured At Fair Value [Line Items] | ||
Initial terms of finance receivables | 60 months |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Detail Textuals) | 9 Months Ended |
Dec. 31, 2018 | |
Tax year 2017 | |
Significant Accounting Policies [Line Items] | |
Corporate income tax rate | 35.00% |
Latest tax year | |
Significant Accounting Policies [Line Items] | |
Corporate income tax rate | 21.00% |
Subsequent Event (Detail Textua
Subsequent Event (Detail Textuals) - Line of credit facility - USD ($) $ in Millions | Feb. 12, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Basis rate | 4.00% | |
Description of variable rate | 30-day LIBOR | |
Subsequent event | ||
Debt Instrument [Line Items] | ||
Interest coverage ratio description | The minimum interest coverage ratio requirement to be 0.44 to 1.0 for the measurement period ending December 31, 2018, and 0.20 to 1.0 for the measurement period ending January 31, 2019, and 1.0 to 1.0 for the measurement period ending February 28, 2019 and thereafter | |
Basis rate | 3.00% | |
Description of variable rate | LIBOR plus 4.0 | |
Interest rates for borrowings under the credit facility | 4.00% | |
Aggregate amount available under the line of credit | $ 140 |