Document and Entity Information
Document and Entity Information - shares shares in Millions | 6 Months Ended | |
Sep. 30, 2019 | Nov. 07, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | NICHOLAS FINANCIAL INC | |
Entity Central Index Key | 0001000045 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 0-26680 | |
Entity Incorporation, State or Country Code | A1 | |
Entity Tax Identification Number | 59-2506879 | |
Entity Address, Address Line One | 2454 McMullen Booth Road | |
Entity Address, Address Line Two | Building C | |
Entity Address, City or Town | Clearwater | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33759 | |
City Area Code | (727) | |
Local Phone Number | 726-0763 | |
Entity Common Stock Shares Outstanding | 12.6 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | NICK | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Assets | ||
Cash | $ 4,678 | $ 35,595 |
Restricted cash | 9,250 | 2,047 |
Finance receivables, net | 199,452 | 202,042 |
Repossessed assets | 1,911 | 1,924 |
Income taxes receivable | 1,669 | 1,654 |
Prepaid expenses and other assets | 3,181 | 1,378 |
Property and equipment, net | 551 | 656 |
Intangibles | 79 | |
Goodwill | 350 | |
Deferred income taxes | 6,825 | 7,124 |
Total assets | 227,946 | 252,420 |
Liabilities and shareholders’ equity | ||
Credit facility | 119,500 | 145,000 |
Unamortized debt issuance costs | (2,790) | (2,381) |
Net long-term debt | 116,710 | 142,619 |
Accounts payable and accrued expenses | 5,403 | 4,916 |
Total liabilities | 122,113 | 147,535 |
Shareholders’ equity | ||
Preferred stock, no par: 5,000 shares authorized; none issued | ||
Common stock, no par: 50,000 shares authorized; 12,638 and 12,624 shares issued, respectively; and 7,925 and 7,910 shares outstanding, respectively | 34,749 | 34,660 |
Treasury stock: 4,714 common shares, at cost | (70,459) | (70,459) |
Retained earnings | 141,543 | 140,684 |
Total shareholders’ equity | 105,833 | 104,885 |
Total liabilities and shareholders’ equity | 227,946 | 252,420 |
Variable Interest Entity | ||
Assets | ||
Restricted cash | 9,250 | 2,047 |
Finance receivables, net | 159,950 | 187,584 |
Repossessed assets | 1,490 | |
Total assets | 170,690 | 189,631 |
Liabilities and shareholders’ equity | ||
Credit facility | 116,710 | 142,619 |
Accounts payable and accrued expenses | 640 | |
Total liabilities | $ 117,350 | $ 142,619 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
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 | 12,638 | 12,624 |
Common stock, shares outstanding | 7,925 | 7,910 |
Treasury stock, shares | 4,714 | 4,714 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Interest and fee income on finance receivables | $ 15,585,000 | $ 19,404,000 | $ 32,226,000 | $ 38,163,000 |
Expenses: | ||||
Marketing | 427,000 | 737,000 | 838,000 | 1,104,000 |
Salaries and employee benefits | 4,718,000 | 4,341,000 | 9,539,000 | 9,607,000 |
Administrative | 3,685,000 | 2,792,000 | 7,323,000 | 5,857,000 |
Provision for credit losses | 4,000,000 | 8,374,000 | 8,385,000 | 13,801,000 |
Amortization of intangibles | 14,000 | 28,000 | ||
Depreciation | 83,000 | 96,000 | 170,000 | 199,000 |
Interest expense | 2,298,000 | 2,386,000 | 4,786,000 | 4,926,000 |
Total expenses | 15,225,000 | 18,726,000 | 31,069,000 | 35,494,000 |
Income before income taxes | 360,000 | 678,000 | 1,157,000 | 2,669,000 |
Income tax expense | 92,000 | 96,000 | 298,000 | 669,000 |
Net income | $ 268,000 | $ 582,000 | $ 859,000 | $ 2,000,000 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.03 | $ 0.07 | $ 0.11 | $ 0.25 |
Diluted (in dollars per share) | $ 0.03 | $ 0.07 | $ 0.11 | $ 0.25 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Retained Earnings |
Balance at Mar. 31, 2018 | $ 108,437 | $ 34,564 | $ (70,459) | $ 144,332 |
Balance (in shares) at Mar. 31, 2018 | 7,895 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of restricted stock awards (in shares) | 18 | |||
Exercise of stock options | 11 | $ 11 | ||
Exercise of stock options (in shares) | 11 | |||
Cancellation of restricted stock awards (in shares) | (20) | |||
Share-based compensation | 16 | $ 16 | ||
Net income | 2,000 | 2,000 | ||
Balance at Sep. 30, 2018 | 110,464 | $ 34,591 | (70,459) | 146,332 |
Balance (in shares) at Sep. 30, 2018 | 7,904 | |||
Balance at Jun. 30, 2018 | 109,986 | $ 34,695 | (70,459) | 145,750 |
Balance (in shares) at Jun. 30, 2018 | 7,909 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of restricted stock awards (in shares) | 15 | |||
Forfeiture of stock options | (59) | $ (59) | ||
Cancellation of restricted stock awards | (45) | $ (45) | ||
Cancellation of restricted stock awards (in shares) | (20) | |||
Net income | 582 | 582 | ||
Balance at Sep. 30, 2018 | 110,464 | $ 34,591 | (70,459) | 146,332 |
Balance (in shares) at Sep. 30, 2018 | 7,904 | |||
Balance at Mar. 31, 2019 | 104,885 | $ 34,660 | (70,459) | 140,684 |
Balance (in shares) at Mar. 31, 2019 | 7,910 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of restricted stock awards (in shares) | 40 | |||
Cancellation of restricted stock awards (in shares) | (25) | |||
Share-based compensation | 89 | $ 89 | ||
Net income | 859 | 859 | ||
Balance at Sep. 30, 2019 | 105,833 | $ 34,749 | (70,459) | 141,543 |
Balance (in shares) at Sep. 30, 2019 | 7,925 | |||
Balance at Jun. 30, 2019 | 105,510 | $ 34,694 | (70,459) | 141,275 |
Balance (in shares) at Jun. 30, 2019 | 7,928 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of restricted stock awards (in shares) | 21 | |||
Cancellation of restricted stock awards (in shares) | (24) | |||
Share-based compensation | 55 | $ 55 | ||
Net income | 268 | 268 | ||
Balance at Sep. 30, 2019 | $ 105,833 | $ 34,749 | $ (70,459) | $ 141,543 |
Balance (in shares) at Sep. 30, 2019 | 7,925 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net income | $ 859 | $ 2,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 170 | 199 |
Amortization of intangibles | 28 | |
Amortization of debt issuance costs | 216 | 723 |
Gain on sale of property and equipment | (7) | |
Repossessed assets | 106 | (344) |
Provision for credit losses | 8,385 | 13,801 |
Amortization of dealer discounts | (4,178) | (5,904) |
Amortization of insurance and fee commissions | (1,359) | (1,040) |
Accretion of purchase price discount | (985) | |
Deferred income taxes | 299 | 844 |
Share-based compensation | 89 | 16 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | (157) | 100 |
Prepaid expenses and other assets | (1,785) | (696) |
Accounts payable and accrued expenses | 376 | (946) |
Income taxes receivable | (15) | (197) |
Unearned insurance and fee commissions | 85 | |
Net cash provided by operating activities | 2,127 | 8,556 |
Cash flows from investing activities | ||
Purchase and origination of finance receivables | (44,202) | (43,292) |
Principal payments received | 65,098 | 66,666 |
Net assets acquired from branch acquisitions, primarly loans | (20,483) | |
Purchase of property and equipment | (32) | (30) |
Proceeds from sale of property and equipment | 7 | |
Net cash provided by investing activities | 388 | 23,344 |
Cash flows from financing activities | ||
Repayments on credit facility | (37,500) | (31,550) |
Proceeds from the credit facility | 12,000 | |
Payment of loan origination fees | (729) | (200) |
Proceeds from exercise of stock options | 11 | |
Net cash used in financing activities | (26,229) | (31,739) |
Net (decrease) increase in cash and restricted cash | (23,714) | 161 |
Cash and restricted cash at the beginning of period | 37,642 | 2,626 |
Cash and restricted cash at the end of period | $ 13,928 | $ 2,787 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Nicholas Financial, Inc. (“Nicholas Financial – Canada”) is a Canadian holding company incorporated under the laws of British Columbia with several wholly-owned United States subsidiaries, including Nicholas Financial, Inc., a Florida corporation (“NFI”). The accompanying consolidated balance sheet as of March 31, 2019, which has been derived from audited financial statements, and the accompanying unaudited interim consolidated financial statements of Nicholas Financial – Canada, and its wholly-owned subsidiaries, (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information, with the instructions to Form 10-Q pursuant to the Securities and Exchange Act of 1934, as amended, and with Article 8 of Regulation S-X thereunder. Accordingly, they do not include all of the information and notes to the consolidated financial statements required by U.S. GAAP for complete consolidated financial statements, although the Company believes that the disclosures made are adequate to ensure the information is not misleading. In the opinion of management, all adjustments (consisting of normal recurring 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, 2020. 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, 2019 as filed with the Securities and Exchange Commission on June 28, 2019. The March 31, 2019 consolidated balance sheet included herein has been derived from the March 31, 2019 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 fair value of the assets and liabilities for business combination. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Sep. 30, 2019 | |
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”). As of February 2019, Chapter 13 bankruptcy accounts are charged-off at the time the bankruptcy status is confirmed on the account. Chapter 13 bankruptcy accounts, for which the corresponding bankruptcy plan has not been confirmed by the relevant court as of September 30, 2019 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 September 30, 2019 and 2018 was 7.9% and 8.4% and 8.1% and 8.4% for the six months ended September 30, 2019 and 2018, respectively, in relation to the total amount financed. Unearned insurance and fee commissions consist primarily of commissions received from the sale of ancillary products. These products include automobile warranties, roadside assistance programs, accident and health insurance, credit life insurance, involuntary unemployment insurance coverage, and forced placed automobile insurance. These commissions are amortized over the life of the contract using the interest method. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share The Company has granted stock compensation awards with nonforfeitable dividend rights which are considered participating securities. Earnings per share is calculated using the two-class method, as such awards are more dilutive under this method than the treasury stock method. Basic earnings per share is calculated by dividing net income allocated to common shareholders by the weighted average number of common shares outstanding during the period, which excludes the participating securities. 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 September 30, (In thousands, except per share amounts) Six months ended September 30, (In thousands, except per share amounts) 2019 2018 2019 2018 Numerator: Net income $ 268 $ 582 $ 859 $ 2,000 Less: Allocation of earnings to participating securities (1 ) (5 ) (6 ) (15 ) Net income allocated to common stock $ 267 $ 577 $ 853 $ 1,985 Basic earnings per share computation: Net income allocated to common stock $ 267 $ 577 $ 853 $ 1,985 Weighted average common shares outstanding, including shares considered participating securities 7,859 7,774 7,881 7,859 Less: Weighted average participating securities outstanding (70 ) (61 ) (61 ) (65 ) Weighted average shares of common stock 7,789 7,713 7,820 7,794 Basic earnings per share $ 0.03 $ 0.07 $ 0.11 $ 0.25 Diluted earnings per share computation: Net income allocated to common stock $ 267 $ 577 $ 853 $ 1,985 Undistributed earnings re-allocated to participating securities — — — — Numerator for diluted earnings per share $ 267 $ 577 $ 853 $ 1,985 Weighted average common shares outstanding for basic earnings per share 7,789 7,713 7,820 7,794 Incremental shares from stock options 1 6 1 6 Weighted average shares and dilutive potential common shares 7,790 7,719 7,821 7,800 Diluted earnings per share $ 0.03 $ 0.07 $ 0.11 $ 0.25 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 September 30, 2019 and 2018, potential shares of common stock from stock options totaling 58,400 and 79,600, respectively, were not included in the diluted earnings per share calculation because their effect is anti-dilutive. For the six months ended September 30, 2019 and 2018, potential shares of common stock from stock options totaling 83,600 and 79,600, respectively, were not included in the diluted earnings per share calculation because their effect is anti-dilutive. |
Finance Receivables
Finance Receivables | 6 Months Ended |
Sep. 30, 2019 | |
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) September 30, 2019 March 31, 2019 September 30, 2018 Finance receivables $ 222,320 $ 228,994 $ 267,236 Accrued interest receivable 3,046 2,889 2,542 Unearned dealer discounts (8,995 ) (10,083 ) (11,352 ) Unearned insurance and fee commissions (2,741 ) (2,826 ) (3,009 ) Finance receivables, net of unearned 213,630 218,974 255,417 Purchase price discount (676 ) — — Allowance for credit losses (13,502 ) (16,932 ) (19,176 ) Finance receivables, net $ 199,452 $ 202,042 $ 236,241 Contracts and Direct Loans each comprise a portfolio segment. The following tables present selected information on the entire portfolio of the Company: As of September 30, Contract Portfolio 2019 2018 Average APR 22.7 % 22.4 % Average discount 7.7 % 7.2 % Average term (months) 52 54 Number of active contracts 27,294 30,548 As of September 30, Direct Loan Portfolio 2019 2018 Average APR 26.5 % 25.1 % Average term (months) 27 32 Number of active contracts 2,921 2,458 The Company purchases Contracts from automobile dealers at a negotiated price that is less than the original principal amount being financed by the purchaser of the automobile. The Contracts are predominantly for used vehicles. As of September 30, 2019, 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 the typical Contract due to the customer’s prior payment history with the Company; however, the underlying collateral is “typically” 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 September 30, 2019, loans made by the Company pursuant to its Direct Loan program constituted approximately 4.3% of the aggregate principal amount of the Company’s loan portfolio. Changes in the allowance for credit losses for both Contracts and Direct Loans were driven primarily by consideration the composition of the portfolio, current economic conditions, the estimated net realizable value of the underlying collateral, historical loan loss experience, delinquency, non-performing assets, and bankrupt accounts when determining management’s estimate of probable credit losses and adequacy of the allowance for credit losses. If the allowance for credit losses is determined to be inadequate, then an additional charge to the provision would be recorded to maintain adequate reserves based on management’s evaluation of the risk inherent in the loan portfolio. Additionally, credit loss trends over several reporting periods are utilized in estimating future losses and overall portfolio performance. Conversely, the Company could identify abnormalities in the composition of the portfolio, which would indicate the calculation is overstated and management judgement may be required to determine the allowance of credit losses for both Contracts and Direct Loans. Each portfolio segment consists of smaller balance homogeneous loans which are collectively evaluated for impairment. Allowance for Credit Losses The following table sets forth a reconciliation of the changes in the allowance for credit losses on Contracts and Direct Loans for the three months ended September 30, 2019 and 2018: Three months ended September 30, 2019 Six months ended September 30, 2019 Contracts Direct Loans Consolidated Contracts Direct Loans Consolidated Balance at beginning of period $ 15,494 $ 618 $ 16,112 $ 16,575 $ 357 $ 16,932 Provision for credit losses 3,600 400 4,000 7,580 805 8,385 Charge-offs (8,140 ) (182 ) (8,322 ) (14,675 ) (339 ) (15,014 ) Recoveries 1,698 14 1,712 3,172 27 3,199 Balance at September 30, 2019 $ 12,652 $ 850 $ 13,502 $ 12,652 $ 850 $ 13,502 Three months ended September 30, 2018 Six months ended September 30, 2018 Contracts Direct Loans Consolidated Contracts Direct Loans Consolidated Balance at beginning of period $ 18,116 $ 949 $ 19,065 $ 19,433 $ 833 $ 20,266 Provision for credit losses 8,684 (310 ) 8,374 13,912 (111 ) 13,801 Charge-offs (8,578 ) (164 ) (8,742 ) (15,629 ) (254 ) (15,883 ) Recoveries 470 9 479 976 16 992 Balance at September 30, 2018 $ 18,692 $ 484 $ 19,176 $ 18,692 $ 484 $ 19,176 During the first quarter of the fiscal year ending March 31, 2019, the Company began using the trailing six-month charge-offs, annualized, to calculate the allowance for credit losses. The following table is an assessment of the credit quality by creditworthiness: (In thousands) September 30, 2019 September 30, 2018 Contracts Direct Loans Total Contracts Direct Loans Total Performing accounts $ 205,458 $ 9,309 $ 214,767 $ 244,730 $ 7,248 $ 251,978 Non-performing accounts 6,938 171 7,109 11,365 217 11,582 Total 212,396 9,480 221,876 256,095 7,465 263,560 Chapter 13 bankruptcy accounts 436 8 444 3,582 94 3,676 Finance receivables $ 212,832 $ 9,488 $ 222,320 $ 259,677 $ 7,559 $ 267,236 A performing account is defined as an account that is less than 61 days past due. The Company defines an automobile contract as delinquent when more than 10% of a payment contractually due by a certain date has not been paid 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 payment extensions. The only modification of terms in those circumstances is to advance the obligor’s next due date by one month and extend the maturity date of the receivable. There are no other concessions, such as a reduction in interest rate, or forgiveness of principal or of accrued interest. Accordingly, the Company considers such extensions to be insignificant delays in payments rather than troubled debt restructurings. A non-performing account is defined as an account that is contractually delinquent for 61 days or more or is a Chapter 13 bankruptcy account for which the corresponding bankruptcy plan has not been confirmed by the relevant court. Once the account is deemed non-performing, the accrual of interest income is suspended. As of February 2019, the Company changed the charge-off policy from 181 days contractually delinquent to 121 days contractually delinquent. Also, as of February 2019, once Chapter 13 bankruptcy plans are confirmed by the relevant court, the corresponding accounts are charged off. 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 Company does consider Chapter 13 bankruptcy accounts, for which the corresponding bankruptcy plan has not been confirmed as of the period end to be troubled debt restructurings and included in the Company’s allowance for credit losses is a specific reserve of approximately $232,000 and $771,000 for these accounts as of September 30, 2019 and September 30, 2018, respectively. The following tables present certain information regarding the delinquency rates experienced by the Company with respect to Contracts and Direct Loans, excluding Chapter 13 bankruptcy accounts: Contracts (In thousands, except percentages) Balance Outstanding 30 – 59 days 60 – 89 days 90 – 119 days 120+ Total September 30, 2019 $ 212,396 $ 13,981 $ 4,950 $ 1,946 $ 42 $ 20,919 6.58 % 2.33 % 0.92 % 0.02 % 9.85 % September 30, 2018 $ 256,095 $ 17,399 $ 7,132 $ 2,190 $ 2,043 $ 28,764 6.79 % 2.78 % 0.86 % 0.80 % 11.23 % Direct Loans Balance Outstanding 30 – 59 days 60 – 89 days 90 – 119 days 120+ Total September 30, 2019 $ 9,480 $ 219 $ 115 $ 56 $ — $ 390 2.31 % 1.21 % 0.59 % — 4.11 % September 30, 2018 $ 7,465 $ 162 $ 122 $ 27 $ 68 $ 379 2.17 % 1.63 % 0.36 % 0.91 % 5.08 % |
Goodwill and Intangibles
Goodwill and Intangibles | 6 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | 5. Goodwill and Intangibles On April 30, 2019, the Company completed an acquisition of three branches, representing substantially all of the assets, of ML Credit Group, LLC (d/b/a Metrolina Credit Company) (“Metrolina”). Two acquired branches are located in the state of North Carolina and one branch is located in South Carolina. Based on its evaluation of the agreement, the Company accounted for the acquisition as a business combination. In conjunction with the acquisition, the Company allocated the purchase price, tangible assets, and intangible assets among the acquired branches based on the fair values of their respective acquired assets. As of September 30, 2019, the accounting related to this acquisition is preliminary. The final determination of the fair value of the customer lists and goodwill will be completed within the twelve-month measurement period from the date of the acquisition as required by FASB ASC Topic 805-10-25. The Company recorded the following goodwill and intangibles in its preliminary accounting for this acquisition. As of September 30, 2019 Acquisitions: Number of branches acquired through business combinations 3 Purchase price $ 20,483 Tangible assets: Finance receivable, net 20,097 Other assets 144 Assumed liabilities (215 ) Total net tangible assets 20,026 Excess of purchase prices over carrying value of net tangible assets $ 457 Indirect dealer network relationships $ 64 Direct customer relationships 43 Goodwill 350 Total goodwill and intangible assets $ 457 For the measurement period adjustment, for three months ended as of September 30, 2019, the Company identified an insignificant amount of assets and liabilities related to the purchase of Metrolina. For the six months ended as of September 30, 2019, the Company incurred approximately $278,000 in expenses related to the purchase of the Metrolina assets. |
Credit Facility
Credit Facility | 6 Months Ended |
Sep. 30, 2019 | |
Line Of Credit Facility [Abstract] | |
Credit Facility | 6. Credit Facility Senior Secured Credit Facility On March 29, 2019, NF Funding I, wholly-owned, special purpose financing subsidiary of NFI entered into a senior secured credit facility (the “Credit Facility”) pursuant to a credit agreement with Ares Agent Services, L.P., as administrative agent and collateral agent, and the lenders that are party thereto (the “Credit Agreement”). The Company’s prior credit facility was paid off in connection with this Credit Facility. Pursuant to the Credit Agreement, the lenders have agreed to extend to NF Funding I a line of credit of up to $175,000,000, which will be used to purchase motor vehicle retail installment sale contracts from NFI on a revolving basis pursuant to a related receivables purchase agreement between NF Funding I and NFI (the “Receivables Purchase Agreement”). Under the terms of the Receivables Purchase Agreement, NFI will sell to NF Funding I the receivables under the installment sale contracts. NFI will continue to service the motor vehicle retail installment sale contracts transferred to NF Funding I pursuant to a related servicing agreement (the “Servicing Agreement”). The availability of funds under the Credit Facility is generally limited to 82.5% of the value of non-delinquent receivables, and outstanding advances under the Credit Facility will accrue interest at a rate of LIBOR plus 3.75%. The commitment period for advances under the Credit Facility is three years. At the end of the commitment period, the outstanding balance would be paid off over a four-year amortization period. In connection with the Credit Facility, NFI has guaranteed NF Funding I ’s obligations under the Credit Agreement up to 10% of the highest aggregate principal amount outstanding under the Credit Agreement at any time pursuant to a limited guaranty. The Company is also obligated to cover any losses of the lender parties resulting from certain “bad acts” of the Company or its subsidiaries, such as fraud, misappropriation of funds or unpermitted disposition of the assets. Pursuant to a related security agreement (the “Security Agreement”), NF Funding I granted a security interest in substantially all of its assets as collateral for its obligations under the Credit Facility. In addition, NFI pledged the equity interests of NF Funding I as additional collateral. The Credit Agreement and the other loan documents contain customary events of default and negative covenants, including but not limited to those governing indebtedness, liens, fundamental changes, investments, and sales of receivables. If an event of default occurs, the lenders could increase borrowing costs, restrict NF Funding I ’s ability to obtain additional advances under the Credit Facility, accelerate all amounts outstanding under the Credit Facility, enforce their interest against collateral pledged under the Credit Facility or enforce their rights under the Company’s guarantees. Once sold to NF Funding I, the assets described above are separate and distinct from the Company’s own assets and will not be available to the Company’s creditors should the Company become insolvent, although they will be presented on a consolidated basis on the Company’s balance sheet. Future maturities of debt as of September 30, 2019 are as follows: (in thousands) Quarter Ended September 30, 2020 $ — 2021 — 2022 — 2023 — 2024 39,832 Thereafter 79,668 $ 119,500 Prior Line of Credit Prior to March 29, 2019, the Company utilized a line of credit facility (the “Line of Credit”) ranging from $140 million to $225 million during fiscal years 2019 and 2018 . The credit agreement for the Line of Credit required 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 years provided indicators that the Company may not have been 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 amendments to the corresponding credit agreement or waivers. On November 2, 2018, the Company entered into a Waiver and Amendment No. 9 (“Amendment No. 9”) to the credit 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 credit agreement. Among other things, Amendment No. 10: • waived compliance with the minimum interest coverage ratio for the measurement period ended November 30, 2018; • modified the minimum interest coverage ratio to 0.44 to 1.0 for the measurement period ended on December 31, 2019, 0.2 to 1.0 for the measurement period ended January 31, 2019, and 1.0 to 1.0 for the measurement period ended February 28, 2019 and thereafter; and • reduced the Line of Credit to $140 million. |
Income Taxes
Income Taxes | 6 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7. Income Taxes The Company recorded an income tax expense of approximately $92,000 for the three months ended September 30, 2019 compared to income tax expense of approximately $96,000 for the three months ended September 30, 2018. The Company’s effective tax rate increased to 25.6% for the three months ended September 30, 2019 from 14.2% for the three months ended September 30, 2018. The change in the effective tax rate was attributed to the Tax Cuts and Jobs Act. The Company recorded an income tax expense of approximately $298,000 for the six months ended September 30, 2019 compared to income tax expense of approximately $669,000 for the six months ended September 30, 2018. The Company’s effective tax rate decreased to 25.6% for the six months ended September 30, 2019 from 25.8% for the six months ended September 30, 2018. |
Leases
Leases | 6 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 8. Leases The Company adopted a new lease accounting standard in April 2019. See Note 11, “Summary of Significant Accounting Policies,” for an overview of the transition to this standard. The Company maintains lease agreements related to its branch network and for its corporate headquarters. The branch lease agreements range from one to five years and generally contain options to extend from one to three years. The corporate headquarters lease agreement expires in April 2020 and the Company is in the process of negotiating a new lease agreement. All of the Company’s lease agreements are considered operating leases. None of the Company’s lease payments are dependent on a rate or index that may change after the commencement date, other than the passage of time. The Company’s lease liability was $2.2 million as of September 30, 2019. This liability is based on the present value of the remaining minimum rental payments using a discount rate that is determined based on the Company’s incremental borrowing rate on its senior revolving credit facility. The lease asset was $2.2 million as of September 30, 2019. This asset includes right-of-use assets equaling the lease liability, net of prepaid rent and deferred rents that existed as of the adoption of the new lease standard. The Company has made several policy elections related to lease assets and liabilities. The Company elected to utilize the package of transition practical expedients, which includes not reassessing the following at adoption: (i) whether existing contracts contained leases, (ii) the existing classification of leases as operating or financing, or (iii) the initial direct costs of leases. In addition, the Company did not use hindsight to determine the lease term or include options to extend for leases existing at the transition date. The Company had elected the practical expedient of combining lease and non-lease components for its real estate leases in calculating the present value of the fixed payments without having to perform an allocation between the types of lease components. Future minimum lease payments under non-cancellable operating leases in effect as of September 30, 2019, are as follows: in thousands 2020 (remaining six months) $ 1,076 2021 1,718 2022 890 2023 408 2024 40 Thereafter $ 8 Total future minimum lease payments 4,140 Present value adjustment (1,893 ) Operating lease liability $ 2,247 The following table reports information about the Company’s lease cost for the three months ended September 30, 2019 (in thousands): Lease cost: Operating lease cost $ 456 Variable lease cost 113 Total lease cost $ 569 The following table reports information about the Company’s lease cost for the six months ended September 30, 2019 (in thousands): Lease cost: Operating lease cost $ 922 Variable lease cost 228 Total lease cost $ 1,150 The following table reports other information about the Company’s leases for the three months ended September 30, 2019 (dollar amounts in thousands): Other Lease Information Operating Lease - Operating Cash Flows (Fixed Payments) $ 477 Operating Lease - Operating Cash Flows (Liability Reduction) $ 438 Weighted Average Lease Term - Operating Leases 2.1 years Weighted Average Discount Rate - Operating Leases 6.5% The following table reports other information about the Company’s leases for the six months ended September 30, 2019 (dollar amounts in thousands): Other Lease Information Operating Lease - Operating Cash Flows (Fixed Payments) $ 479 Operating Lease - Operating Cash Flows (Liability Reduction) $ 440 Weighted Average Lease Term - Operating Leases 2.1 years Weighted Average Discount Rate - Operating Leases 6.5% |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 9. 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 Credit Facility. 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 Credit Facility. Based on these market conditions, the fair value of the Credit Facility as of September 30, 2019 was estimated to be equal to the book value. The interest rate for the Credit Facility 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 Value Cash and restricted cash: September 30. 2019 $ 13,928 $ — $ — $ 13,928 $ 13,928 March 31, 2019 $ 37,642 $ — $ — $ 37,642 $ 37,642 Finance receivables: September 30. 2019 $ — $ — $ 199,452 $ 199,452 $ 199,452 March 31, 2019 $ — $ — $ 202,042 $ 202,042 $ 202,042 Repossessed assets: September 30. 2019 $ — $ — $ 1,911 $ 1,911 $ 1,911 March 31, 2019 $ — $ — $ 1,924 $ 1,924 $ 1,924 Credit facility: September 30. 2019 $ — $ 119,500 $ — $ 119,500 $ 119,500 March 31, 2019 $ — $ 145,000 $ — $ 145,000 $ 145,000 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 | 6 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 10. 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 | 6 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 11. Summary of Significant Accounting Policies Reclassifications The Company made certain reclassifications from drafts payable to accounts payable and accrued expenses on the Consolidated Balance Sheets. A portion of net assets acquired from branches, primarily loans used in investing activities was reclassified to repossessed assets used in operating activities on the Consolidated Statements of Cash Flows. Originations of finance receivables were reclassed from the payments received the cashflows from financing activities to the purchases and originations of finance receivables. Net income and shareholders’ equity were not changed. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“ FASB As a result of the adoption of the new lease standard on April 1, 2019, the Company recorded $2.7 million for both lease liabilities and the corresponding lease assets. The lease liabilities were based on the present value of the remaining minimum rental payments using discount rates as of the effective date. There was no impact to the consolidated statements of income related to the adoption of this standard. The adoption of this standard did not require the Company to alter its debt covenants. Reconciliation of the new accounting standard was completed in the prior quarter. In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-12 Derivatives and Hedging (Topic 815). The guidance is intended to better align an entity’s risk management activities and financial reporting for hedging relationships. This guidance was effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. The impact of the adoption of this guidance on its Consolidated Financial Statements and related disclosures was not material. Recent Accounting Pronouncements In June 2016, the FASB issued an accounting update to change the impairment model for estimating credit losses on financial assets. The current incurred loss impairment model requires the recognition of credit losses when it is probable that a loss has been incurred. The incurred loss model will be replaced by an expected loss model, which requires entities to estimate the lifetime expected credit loss on such instruments and to record an allowance to offset the amortized cost basis of the financial asset. This update is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted. The Company believes the implementation of the accounting update will have a material adverse effect on the Company’s consolidated financial statements and is in the process of quantifying the potential impacts. Recently, the FASB voted to delay the implementation date for this accounting standard, for smaller reporting companies, the new effective date is beginning after December 15, 2022, and early adoption is permitted. In August 2018, the FASB issued an accounting update to provide additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. The amendments align the capitalization requirements for hosting arrangements that are service contracts with the capitalization principles for internal-use software. This update is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the potential impact of this update on its consolidated financial statements. The Company does not believe there are any other recently issued accounting standards that have not yet been adopted that will have a material impact on the Company’s consolidated financial statements. |
Variable Interest Entity
Variable Interest Entity | 6 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entity [Abstract] | |
Variable Interest Entity | 12. Variable Interest Entity In March 2019, the Company entered into a new senior secured credit facility collateralized by customer financed receivables by transferring the receivables into a bankruptcy-remote variable interest entity (VIE). Under the terms of the transaction, all cash collections and other cash proceeds of the customer receivables go first to the servicer and the holders of the asset-backed notes, and then to the residual equity holder. The Company retains the servicing of the portfolio and receives a monthly fee of 2.5% (annualized) based on the outstanding balance of the financed receivables, and the Company currently holds all of the residual equity. In addition, the Company, rather than the VIE, retains certain credit insurance income together with certain recoveries related to credit insurance and on charge-offs of the financed receivables, which will continue to be reflected as a reduction of net charge-offs on a consolidated basis for as long as the Company consolidates the VIE. The Company consolidates the VIE when the Company determines that it is the primary beneficiary, the Company has the power to direct the activities that most significantly impact the performance of the VIE and it has the obligation to absorb losses and the right to receive significant residual returns. The assets of the VIE serve as collateral for the obligations of the VIE. The lender has no recourse to assets outside of the VIE. The following table presents the assets and liabilities held by the VIE (for legal purposes, the assets and the liabilities of the VIE remain distinct from the Company): September 30, 2019 (Unaudited) March 31, 2019 Assets Restricted cash $ 9,250 $ 2,047 Finance receivables, net 159,950 187,584 Repossessed assets 1,490 — Total assets $ 170,690 $ 189,631 Liabilities Credit facility $ 116,710 $ 142,619 Accounts payable and accrued expenses 640 — Total liabilities $ 117,350 $ 142,619 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 13. Subsequent Event In May 2019, the Company’s Board of Directors (“Board”) authorized a new stock repurchase program allowing for the repurchase of up to $8.0 million of the Company’s outstanding shares of common stock in open market purchases, privately negotiated transactions, or through other structures in accordance with applicable federal securities laws. The authorization was effective immediately. The Company began the repurchase outstanding shares of common stock starting on October 2, 2019. As of November 8, 2019, the Company had repurchased 14,773 shares of common stock. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Nicholas Financial, Inc. (“Nicholas Financial – Canada”) is a Canadian holding company incorporated under the laws of British Columbia with several wholly-owned United States subsidiaries, including Nicholas Financial, Inc., a Florida corporation (“NFI”). The accompanying consolidated balance sheet as of March 31, 2019, which has been derived from audited financial statements, and the accompanying unaudited interim consolidated financial statements of Nicholas Financial – Canada, and its wholly-owned subsidiaries, (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information, with the instructions to Form 10-Q pursuant to the Securities and Exchange Act of 1934, as amended, and with Article 8 of Regulation S-X thereunder. Accordingly, they do not include all of the information and notes to the consolidated financial statements required by U.S. GAAP for complete consolidated financial statements, although the Company believes that the disclosures made are adequate to ensure the information is not misleading. In the opinion of management, all adjustments (consisting of normal recurring 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, 2020. 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, 2019 as filed with the Securities and Exchange Commission on June 28, 2019. The March 31, 2019 consolidated balance sheet included herein has been derived from the March 31, 2019 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 fair value of the assets and liabilities for business combination. |
Revenue Recognition | Revenue Recognition Finance receivables consist of automobile finance installment contracts (“Contracts”) and direct consumer loans (“Direct Loans”). As of February 2019, Chapter 13 bankruptcy accounts are charged-off at the time the bankruptcy status is confirmed on the account. Chapter 13 bankruptcy accounts, for which the corresponding bankruptcy plan has not been confirmed by the relevant court as of September 30, 2019 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 September 30, 2019 and 2018 was 7.9% and 8.4% and 8.1% and 8.4% for the six months ended September 30, 2019 and 2018, respectively, in relation to the total amount financed. Unearned insurance and fee commissions consist primarily of commissions received from the sale of ancillary products. These products include automobile warranties, roadside assistance programs, accident and health insurance, credit life insurance, involuntary unemployment insurance coverage, and forced placed automobile insurance. These commissions are amortized over the life of the contract using the interest method. |
Reclassifications | Reclassifications The Company made certain reclassifications from drafts payable to accounts payable and accrued expenses on the Consolidated Balance Sheets. A portion of net assets acquired from branches, primarily loans used in investing activities was reclassified to repossessed assets used in operating activities on the Consolidated Statements of Cash Flows. Originations of finance receivables were reclassed from the payments received the cashflows from financing activities to the purchases and originations of finance receivables. Net income and shareholders’ equity were not changed. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“ FASB As a result of the adoption of the new lease standard on April 1, 2019, the Company recorded $2.7 million for both lease liabilities and the corresponding lease assets. The lease liabilities were based on the present value of the remaining minimum rental payments using discount rates as of the effective date. There was no impact to the consolidated statements of income related to the adoption of this standard. The adoption of this standard did not require the Company to alter its debt covenants. Reconciliation of the new accounting standard was completed in the prior quarter. In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-12 Derivatives and Hedging (Topic 815). The guidance is intended to better align an entity’s risk management activities and financial reporting for hedging relationships. This guidance was effective for fiscal years beginning after December 15, 2018 and for interim periods within those fiscal years. The impact of the adoption of this guidance on its Consolidated Financial Statements and related disclosures was not material. Recent Accounting Pronouncements In June 2016, the FASB issued an accounting update to change the impairment model for estimating credit losses on financial assets. The current incurred loss impairment model requires the recognition of credit losses when it is probable that a loss has been incurred. The incurred loss model will be replaced by an expected loss model, which requires entities to estimate the lifetime expected credit loss on such instruments and to record an allowance to offset the amortized cost basis of the financial asset. This update is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted. The Company believes the implementation of the accounting update will have a material adverse effect on the Company’s consolidated financial statements and is in the process of quantifying the potential impacts. Recently, the FASB voted to delay the implementation date for this accounting standard, for smaller reporting companies, the new effective date is beginning after December 15, 2022, and early adoption is permitted. In August 2018, the FASB issued an accounting update to provide additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. The amendments align the capitalization requirements for hosting arrangements that are service contracts with the capitalization principles for internal-use software. This update is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the potential impact of this update on its consolidated financial statements. The Company does not believe there are any other recently issued accounting standards that have not yet been adopted that will have a material impact on the Company’s consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings (loss) per share | Three months ended September 30, (In thousands, except per share amounts) Six months ended September 30, (In thousands, except per share amounts) 2019 2018 2019 2018 Numerator: Net income $ 268 $ 582 $ 859 $ 2,000 Less: Allocation of earnings to participating securities (1 ) (5 ) (6 ) (15 ) Net income allocated to common stock $ 267 $ 577 $ 853 $ 1,985 Basic earnings per share computation: Net income allocated to common stock $ 267 $ 577 $ 853 $ 1,985 Weighted average common shares outstanding, including shares considered participating securities 7,859 7,774 7,881 7,859 Less: Weighted average participating securities outstanding (70 ) (61 ) (61 ) (65 ) Weighted average shares of common stock 7,789 7,713 7,820 7,794 Basic earnings per share $ 0.03 $ 0.07 $ 0.11 $ 0.25 Diluted earnings per share computation: Net income allocated to common stock $ 267 $ 577 $ 853 $ 1,985 Undistributed earnings re-allocated to participating securities — — — — Numerator for diluted earnings per share $ 267 $ 577 $ 853 $ 1,985 Weighted average common shares outstanding for basic earnings per share 7,789 7,713 7,820 7,794 Incremental shares from stock options 1 6 1 6 Weighted average shares and dilutive potential common shares 7,790 7,719 7,821 7,800 Diluted earnings per share $ 0.03 $ 0.07 $ 0.11 $ 0.25 |
Finance Receivables (Tables)
Finance Receivables (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of finance receivables consisting of automobile finance installment Contracts and Direct Loans | Finance receivables consist of Contracts and Direct Loans and are detailed as follows: (In thousands) September 30, 2019 March 31, 2019 September 30, 2018 Finance receivables $ 222,320 $ 228,994 $ 267,236 Accrued interest receivable 3,046 2,889 2,542 Unearned dealer discounts (8,995 ) (10,083 ) (11,352 ) Unearned insurance and fee commissions (2,741 ) (2,826 ) (3,009 ) Finance receivables, net of unearned 213,630 218,974 255,417 Purchase price discount (676 ) — — Allowance for credit losses (13,502 ) (16,932 ) (19,176 ) Finance receivables, net $ 199,452 $ 202,042 $ 236,241 |
Schedule of selected information on entire comprise portfolio | Contracts and Direct Loans each comprise a portfolio segment. The following tables present selected information on the entire portfolio of the Company: As of September 30, Contract Portfolio 2019 2018 Average APR 22.7 % 22.4 % Average discount 7.7 % 7.2 % Average term (months) 52 54 Number of active contracts 27,294 30,548 As of September 30, Direct Loan Portfolio 2019 2018 Average APR 26.5 % 25.1 % Average term (months) 27 32 Number of active contracts 2,921 2,458 |
Schedule of reconciliation of the changes in the allowance for credit losses | The following table sets forth a reconciliation of the changes in the allowance for credit losses on Contracts and Direct Loans for the three months ended September 30, 2019 and 2018: Three months ended September 30, 2019 Six months ended September 30, 2019 Contracts Direct Loans Consolidated Contracts Direct Loans Consolidated Balance at beginning of period $ 15,494 $ 618 $ 16,112 $ 16,575 $ 357 $ 16,932 Provision for credit losses 3,600 400 4,000 7,580 805 8,385 Charge-offs (8,140 ) (182 ) (8,322 ) (14,675 ) (339 ) (15,014 ) Recoveries 1,698 14 1,712 3,172 27 3,199 Balance at September 30, 2019 $ 12,652 $ 850 $ 13,502 $ 12,652 $ 850 $ 13,502 Three months ended September 30, 2018 Six months ended September 30, 2018 Contracts Direct Loans Consolidated Contracts Direct Loans Consolidated Balance at beginning of period $ 18,116 $ 949 $ 19,065 $ 19,433 $ 833 $ 20,266 Provision for credit losses 8,684 (310 ) 8,374 13,912 (111 ) 13,801 Charge-offs (8,578 ) (164 ) (8,742 ) (15,629 ) (254 ) (15,883 ) Recoveries 470 9 479 976 16 992 Balance at September 30, 2018 $ 18,692 $ 484 $ 19,176 $ 18,692 $ 484 $ 19,176 |
Schedule of an assessment of the credit quality by creditworthiness | The following table is an assessment of the credit quality by creditworthiness: (In thousands) September 30, 2019 September 30, 2018 Contracts Direct Loans Total Contracts Direct Loans Total Performing accounts $ 205,458 $ 9,309 $ 214,767 $ 244,730 $ 7,248 $ 251,978 Non-performing accounts 6,938 171 7,109 11,365 217 11,582 Total 212,396 9,480 221,876 256,095 7,465 263,560 Chapter 13 bankruptcy accounts 436 8 444 3,582 94 3,676 Finance receivables $ 212,832 $ 9,488 $ 222,320 $ 259,677 $ 7,559 $ 267,236 |
Schedule of information regarding delinquency rates | The following tables present certain information regarding the delinquency rates experienced by the Company with respect to Contracts and Direct Loans, excluding Chapter 13 bankruptcy accounts: Contracts (In thousands, except percentages) Balance Outstanding 30 – 59 days 60 – 89 days 90 – 119 days 120+ Total September 30, 2019 $ 212,396 $ 13,981 $ 4,950 $ 1,946 $ 42 $ 20,919 6.58 % 2.33 % 0.92 % 0.02 % 9.85 % September 30, 2018 $ 256,095 $ 17,399 $ 7,132 $ 2,190 $ 2,043 $ 28,764 6.79 % 2.78 % 0.86 % 0.80 % 11.23 % Direct Loans Balance Outstanding 30 – 59 days 60 – 89 days 90 – 119 days 120+ Total September 30, 2019 $ 9,480 $ 219 $ 115 $ 56 $ — $ 390 2.31 % 1.21 % 0.59 % — 4.11 % September 30, 2018 $ 7,465 $ 162 $ 122 $ 27 $ 68 $ 379 2.17 % 1.63 % 0.36 % 0.91 % 5.08 % |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangibles in its Preliminary Accounting for Acquisition | The Company recorded the following goodwill and intangibles in its preliminary accounting for this acquisition. As of September 30, 2019 Acquisitions: Number of branches acquired through business combinations 3 Purchase price $ 20,483 Tangible assets: Finance receivable, net 20,097 Other assets 144 Assumed liabilities (215 ) Total net tangible assets 20,026 Excess of purchase prices over carrying value of net tangible assets $ 457 Indirect dealer network relationships $ 64 Direct customer relationships 43 Goodwill 350 Total goodwill and intangible assets $ 457 |
Credit Facility (Tables)
Credit Facility (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Line Of Credit Facility [Abstract] | |
Schedule of Future Maturities of Debt | Future maturities of debt as of September 30, 2019 are as follows: (in thousands) Quarter Ended September 30, 2020 $ — 2021 — 2022 — 2023 — 2024 39,832 Thereafter 79,668 $ 119,500 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of future minimum lease payments under non-cancellable operating leases | Future minimum lease payments under non-cancellable operating leases in effect as of September 30, 2019, are as follows: in thousands 2020 (remaining six months) $ 1,076 2021 1,718 2022 890 2023 408 2024 40 Thereafter $ 8 Total future minimum lease payments 4,140 Present value adjustment (1,893 ) Operating lease liability $ 2,247 |
Schedule of lease cost | The following table reports information about the Company’s lease cost for the three months ended September 30, 2019 (in thousands): Lease cost: Operating lease cost $ 456 Variable lease cost 113 Total lease cost $ 569 The following table reports information about the Company’s lease cost for the six months ended September 30, 2019 (in thousands): Lease cost: Operating lease cost $ 922 Variable lease cost 228 Total lease cost $ 1,150 |
Schedule of other lease information | The following table reports other information about the Company’s leases for the three months ended September 30, 2019 (dollar amounts in thousands): Other Lease Information Operating Lease - Operating Cash Flows (Fixed Payments) $ 477 Operating Lease - Operating Cash Flows (Liability Reduction) $ 438 Weighted Average Lease Term - Operating Leases 2.1 years Weighted Average Discount Rate - Operating Leases 6.5% The following table reports other information about the Company’s leases for the six months ended September 30, 2019 (dollar amounts in thousands): Other Lease Information Operating Lease - Operating Cash Flows (Fixed Payments) $ 479 Operating Lease - Operating Cash Flows (Liability Reduction) $ 440 Weighted Average Lease Term - Operating Leases 2.1 years Weighted Average Discount Rate - Operating Leases 6.5% |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
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 Value Cash and restricted cash: September 30. 2019 $ 13,928 $ — $ — $ 13,928 $ 13,928 March 31, 2019 $ 37,642 $ — $ — $ 37,642 $ 37,642 Finance receivables: September 30. 2019 $ — $ — $ 199,452 $ 199,452 $ 199,452 March 31, 2019 $ — $ — $ 202,042 $ 202,042 $ 202,042 Repossessed assets: September 30. 2019 $ — $ — $ 1,911 $ 1,911 $ 1,911 March 31, 2019 $ — $ — $ 1,924 $ 1,924 $ 1,924 Credit facility: September 30. 2019 $ — $ 119,500 $ — $ 119,500 $ 119,500 March 31, 2019 $ — $ 145,000 $ — $ 145,000 $ 145,000 |
Variable Interest Entity (Table
Variable Interest Entity (Tables) | 6 Months Ended |
Sep. 30, 2019 | |
Variable Interest Entity [Abstract] | |
Schedule of Assets and Liabilities Held by VIE | The following table presents the assets and liabilities held by the VIE (for legal purposes, the assets and the liabilities of the VIE remain distinct from the Company): September 30, 2019 (Unaudited) March 31, 2019 Assets Restricted cash $ 9,250 $ 2,047 Finance receivables, net 159,950 187,584 Repossessed assets 1,490 — Total assets $ 170,690 $ 189,631 Liabilities Credit facility $ 116,710 $ 142,619 Accounts payable and accrued expenses 640 — Total liabilities $ 117,350 $ 142,619 |
Revenue Recognition (Detail Tex
Revenue Recognition (Detail Textuals) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue Recognition And Deferred Revenue [Abstract] | ||||
Interest income accrual on finance receivables suspension condition | Accrual of interest income on finance receivables is suspended when a loan is contractually delinquent for 61 days or more, or the collateral is repossessed, whichever is earlier. The Company reverses the accrual of interest income when the loan is contractually delinquent 61 days or more. | |||
Average dealer discount associated with new volume | 7.90% | 8.40% | 8.10% | 8.40% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net income | $ 268 | $ 582 | $ 859 | $ 2,000 |
Less: Allocation of earnings to participating securities | (1) | (5) | (6) | (15) |
Net income allocated to common stock | 267 | 577 | 853 | 1,985 |
Basic earnings per share computation: | ||||
Net income allocated to common stock | $ 267 | $ 577 | $ 853 | $ 1,985 |
Weighted average common shares outstanding, including shares considered participating securities | 7,859 | 7,774 | 7,881 | 7,859 |
Less: Weighted average participating securities outstanding | (70) | (61) | (61) | (65) |
Weighted average shares of common stock | 7,789 | 7,713 | 7,820 | 7,794 |
Basic earnings per share | $ 0.03 | $ 0.07 | $ 0.11 | $ 0.25 |
Diluted earnings per share computation: | ||||
Net income allocated to common stock | $ 267 | $ 577 | $ 853 | $ 1,985 |
Numerator for diluted earnings per share | $ 267 | $ 577 | $ 853 | $ 1,985 |
Weighted average common shares outstanding for basic earnings per share | 7,789 | 7,713 | 7,820 | 7,794 |
Incremental shares from stock options | 1 | 6 | 1 | 6 |
Weighted average shares and dilutive potential common shares | 7,790 | 7,719 | 7,821 | 7,800 |
Diluted earnings per share | $ 0.03 | $ 0.07 | $ 0.11 | $ 0.25 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textuals) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
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 | 58,400 | 79,600 | 83,600 | 79,600 |
Finance Receivables - Summary o
Finance Receivables - Summary of contracts and direct loans included in finance receivables (Details) - Finance receivables - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses | $ (13,502) | $ (16,112) | $ (16,932) | $ (19,176) | $ (19,065) | $ (20,266) |
Contracts and direct loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Finance receivables | 222,320 | 228,994 | 267,236 | |||
Accrued interest receivable | 3,046 | 2,889 | 2,542 | |||
Unearned dealer discounts | (8,995) | (10,083) | (11,352) | |||
Unearned insurance and fee commissions | (2,741) | (2,826) | (3,009) | |||
Finance receivables, net of unearned | 213,630 | 218,974 | 255,417 | |||
Purchase price discount | (676) | |||||
Allowance for credit losses | (13,502) | (16,932) | (19,176) | |||
Finance receivables, net | $ 199,452 | $ 202,042 | $ 236,241 |
Finance Receivables - Selected
Finance Receivables - Selected information on entire portfolio of Company (Details 1) - Contract | 6 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average APR | 22.70% | 22.40% |
Average discount | 7.70% | 7.20% |
Average term (months) | 52 months | 54 months |
Number of active contracts | 27,294 | 30,548 |
Direct Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average APR | 26.50% | 25.10% |
Average term (months) | 27 months | 32 months |
Number of active contracts | 2,921 | 2,458 |
Finance Receivables (Detail Tex
Finance Receivables (Detail Textuals) - Direct Loans | Sep. 30, 2019USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of direct loan to total loan portfolio | 4.30% |
Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Finance receivables, net | $ 500 |
Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Finance receivables, net | $ 11,000 |
Finance Receivables - Summary_2
Finance Receivables - Summary of reconciliation of changes in allowance for credit losses on contracts (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for credit losses | $ 4,000 | $ 8,374 | $ 8,385 | $ 13,801 |
Finance receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at beginning of period | 16,112 | 19,065 | 16,932 | 20,266 |
Provision for credit losses | 4,000 | 8,374 | 8,385 | 13,801 |
Charge-offs | (8,322) | (8,742) | (15,014) | (15,883) |
Recoveries | 1,712 | 479 | 3,199 | 992 |
Balance at end of period | 13,502 | 19,176 | 13,502 | 19,176 |
Finance receivables | Contract Portfolio | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at beginning of period | 15,494 | 18,116 | 16,575 | 19,433 |
Provision for credit losses | 3,600 | 8,684 | 7,580 | 13,912 |
Charge-offs | (8,140) | (8,578) | (14,675) | (15,629) |
Recoveries | 1,698 | 470 | 3,172 | 976 |
Balance at end of period | 12,652 | 18,692 | 12,652 | 18,692 |
Finance receivables | Direct Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at beginning of period | 618 | 949 | 357 | 833 |
Provision for credit losses | 400 | (310) | 805 | (111) |
Charge-offs | (182) | (164) | (339) | (254) |
Recoveries | 14 | 9 | 27 | 16 |
Balance at end of period | $ 850 | $ 484 | $ 850 | $ 484 |
Finance Receivables - Assessmen
Finance Receivables - Assessment of credit quality by creditworthiness (Details 3) - Finance receivables - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 221,876 | $ 263,560 |
Finance receivables | 222,320 | 267,236 |
Chapter 13 bankruptcy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables | 444 | 3,676 |
Direct Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 9,480 | 7,465 |
Finance receivables | 9,488 | 7,559 |
Direct Loans | Chapter 13 bankruptcy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables | 8 | 94 |
Performing accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 214,767 | 251,978 |
Performing accounts | Direct Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 9,309 | 7,248 |
Non-performing accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 7,109 | 11,582 |
Non-performing accounts | Direct Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 171 | 217 |
Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 212,396 | 256,095 |
Finance receivables | 212,832 | 259,677 |
Contract Portfolio | Chapter 13 bankruptcy | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Finance receivables | 436 | 3,582 |
Contract Portfolio | Performing accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | 205,458 | 244,730 |
Contract Portfolio | Non-performing accounts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 6,938 | $ 11,365 |
Finance Receivables (Detail T_2
Finance Receivables (Detail Textuals 1) - USD ($) $ in Thousands | Feb. 28, 2019 | Sep. 30, 2019 | Sep. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maximum criteria for receivable to be a performing account | 61 days | ||
Percentage of more than payment contractually for delinquent | 10.00% | ||
Minimum criteria for receivable to be a non-performing account | 61 days | ||
Troubled debt restructuring allowance for credit losses | $ 232,000 | $ 771,000 | |
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Criteria for receivable to be delinquent account | 181 days | ||
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Criteria for receivable to be delinquent account | 121 days |
Finance Receivables - Informati
Finance Receivables - Information regarding delinquency rates with respect to contracts and direct loans (Details 4) - Finance receivables - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance Outstanding | $ 221,876 | $ 263,560 |
Direct Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance Outstanding | 9,480 | 7,465 |
Total | $ 390 | $ 379 |
Total (in percentage) | 4.11% | 5.08% |
Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance Outstanding | $ 212,396 | $ 256,095 |
Total | $ 20,919 | $ 28,764 |
Total (in percentage) | 9.85% | 11.23% |
30 - 59 days | Direct Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 219 | $ 162 |
Total (in percentage) | 2.31% | 2.17% |
30 - 59 days | Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 13,981 | $ 17,399 |
Total (in percentage) | 6.58% | 6.79% |
60 - 89 days | Direct Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 115 | $ 122 |
Total (in percentage) | 1.21% | 1.63% |
60 - 89 days | Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 4,950 | $ 7,132 |
Total (in percentage) | 2.33% | 2.78% |
90 - 119 days | Direct Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 56 | $ 27 |
Total (in percentage) | 0.59% | 0.36% |
90 - 119 days | Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 1,946 | $ 2,190 |
Total (in percentage) | 0.92% | 0.86% |
Over 120 days | Direct Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 68 | |
Total (in percentage) | 0.91% | |
Over 120 days | Contract Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 42 | $ 2,043 |
Total (in percentage) | 0.02% | 0.80% |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Detail Textuals) - Metrolina | Apr. 30, 2019Branch | Sep. 30, 2019USD ($) |
Business Acquisition [Line Items] | ||
Acquisition completion date | Apr. 30, 2019 | |
Number of branches acquired | 3 | |
Expense related to asset acquisition | $ | $ 278,000 | |
North Carolina | ||
Business Acquisition [Line Items] | ||
Number of branches acquired | 2 | |
South Carolina | ||
Business Acquisition [Line Items] | ||
Number of branches acquired | 1 |
Goodwill and Intangibles (Det_2
Goodwill and Intangibles (Details) $ in Thousands | Sep. 30, 2019USD ($)Branch |
Tangible assets: | |
Goodwill | $ 350 |
Metrolina | |
Business Acquisition [Line Items] | |
Number of branches acquired through business combinations | Branch | 3 |
Purchase price | $ 20,483 |
Tangible assets: | |
Finance receivable, net | 20,097 |
Other assets | 144 |
Assumed liabilities | (215) |
Total net tangible assets | 20,026 |
Excess of purchase prices over carrying value of net tangible assets | 457 |
Goodwill | 350 |
Total goodwill and intangible assets | 457 |
Indirect Dealer Network Relationships | Metrolina | |
Tangible assets: | |
Intangible assets | 64 |
Direct Customer Relationships | Metrolina | |
Tangible assets: | |
Intangible assets | $ 43 |
Credit Facility (Detail Textual
Credit Facility (Detail Textuals) - USD ($) | Mar. 29, 2019 | Feb. 12, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Jan. 31, 2019 | Mar. 31, 2018 |
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility utilized | $ 119,500,000 | $ 145,000,000 | ||||||
Interest coverage ratio description | The minimum interest coverage ratio to 0.44 to 1.0 for the measurement period ended on December 31, 2019, 0.2 to 1.0 for the measurement period ended January 31, 2019, and 1.0 to 1.0 for the measurement period ended February 28, 2019 and thereafter | |||||||
Aggregate amount available under the line of credit | $ 140,000,000 | |||||||
Minimum interest coverage ratio | 1.00% | 0.20% | ||||||
Scenario, Forecast [Member] | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Minimum interest coverage ratio | 0.44% | |||||||
Minimum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility utilized | 140,000,000 | $ 140,000,000 | ||||||
Maximum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility utilized | $ 225,000,000 | $ 225,000,000 | ||||||
Senior Secured Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility amount | $ 175,000,000 | |||||||
Debt instrument description of variable rate basis | outstanding advances under the Credit Facility will accrue interest at a rate of LIBOR | |||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | |||||||
Commitment period for advances under Credit Facility | 3 years | |||||||
Amortization period over which outstanding balance of credit facility is paid off | 4 years | |||||||
Senior Secured Credit Facility | Maximum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Credit Facility available as percentage of value of non-delinquent receivables | 82.50% | |||||||
Percentage of borrowers obligation under credit agreement | 10.00% |
Credit Facility - Schedule of F
Credit Facility - Schedule of Future Maturities of Debt (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Long Term Debt By Maturity [Abstract] | |
2024 | $ 39,832 |
Thereafter | 79,668 |
Future maturities of debt | $ 119,500 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ 92,000 | $ 96,000 | $ 298,000 | $ 669,000 |
Increase (decrease) in effective tax rate | 25.60% | 14.20% | 25.60% | 25.80% |
Leases (Detail Textuals)
Leases (Detail Textuals) - USD ($) | 6 Months Ended | |
Sep. 30, 2019 | Mar. 31, 2019 | |
Lessee Lease Description [Line Items] | ||
Operating lease, liability | $ 2,247,000 | $ 0 |
Operating lease, right-of-use asset | $ 2,200,000 | $ 0 |
Branch network lease agreement | ||
Lessee Lease Description [Line Items] | ||
Operating lease, existence of option to extend | true | |
Operating lease minimum term to extend | 1 year | |
Operating lease maximum term to extend | 3 years | |
Corporate headquarters lease agreement | ||
Lessee Lease Description [Line Items] | ||
Operating lease expiration period | 2020-04 | |
Minimum | Branch network lease agreement | ||
Lessee Lease Description [Line Items] | ||
Operating lease, term of contract | 1 year | |
Maximum | Branch network lease agreement | ||
Lessee Lease Description [Line Items] | ||
Operating lease, term of contract | 5 years |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Lease Payments under Non-cancellable Operating Leases (Details) - USD ($) | Sep. 30, 2019 | Mar. 31, 2019 |
Leases [Abstract] | ||
2020 (remaining six months) | $ 1,076,000 | |
2021 | 1,718,000 | |
2022 | 890,000 | |
2023 | 408,000 | |
2024 | 40,000 | |
Thereafter | 8,000 | |
Total future minimum lease payments | 4,140,000 | |
Present value adjustment | (1,893,000) | |
Operating lease, liability | $ 2,247,000 | $ 0 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease cost: | ||
Operating lease cost | $ 456 | $ 922 |
Variable lease cost | 113 | 228 |
Total lease cost | $ 569 | $ 1,150 |
Leases - Schedule of Other Leas
Leases - Schedule of Other Lease Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Other Lease Information | ||
Operating Lease - Operating Cash Flows (Fixed Payments) | $ 477 | $ 479 |
Operating Lease - Operating Cash Flows (Liability Reduction) | $ 438 | $ 440 |
Weighted Average Lease Term - Operating Leases | 2 years 1 month 6 days | 2 years 1 month 6 days |
Weighted Average Discount Rate - Operating Leases | 6.50% | 6.50% |
Fair Value Disclosures (Detail
Fair Value Disclosures (Detail Textuals) | 1 Months Ended | 6 Months Ended |
Dec. 31, 2017 | Sep. 30, 2019 | |
Contract Portfolio | Minimum | ||
Financial Instruments Not Measured At Fair Value [Line Items] | ||
Initial terms of finance receivables | 12 months | |
Contract Portfolio | Maximum | ||
Financial Instruments Not Measured At Fair Value [Line Items] | ||
Initial terms of finance receivables | 60 months | 72 months |
Direct Loans | Minimum | ||
Financial Instruments Not Measured At Fair Value [Line Items] | ||
Initial terms of finance receivables | 12 months | |
Direct Loans | Maximum | ||
Financial Instruments Not Measured At Fair Value [Line Items] | ||
Initial terms of finance receivables | 60 months |
Fair Value Disclosures - Summar
Fair Value Disclosures - Summary of financial instruments not measured at fair value (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and restricted cash | $ 13,928 | $ 37,642 |
Finance receivables | 199,452 | 202,042 |
Repossessed assets: | 1,911 | 1,924 |
Credit facility | 119,500 | 145,000 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and restricted cash | 13,928 | 37,642 |
Finance receivables | 199,452 | 202,042 |
Repossessed assets: | 1,911 | 1,924 |
Credit facility | 119,500 | 145,000 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and restricted cash | 13,928 | 37,642 |
Finance receivables | 0 | 0 |
Repossessed assets: | 0 | 0 |
Credit facility | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and restricted cash | 0 | 0 |
Finance receivables | 0 | 0 |
Repossessed assets: | 0 | 0 |
Credit facility | 119,500 | 145,000 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and restricted cash | 0 | 0 |
Finance receivables | 199,452 | 202,042 |
Repossessed assets: | 1,911 | 1,924 |
Credit facility | $ 0 | $ 0 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Detail Textuals) - USD ($) | Sep. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 2,200,000 | $ 0 | |
Operating lease, liability | $ 2,247,000 | $ 0 | |
ASU 2016-02 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 2,700,000 | ||
Operating lease, liability | $ 2,700,000 |
Variable Interest Entity (Detai
Variable Interest Entity (Detail Textuals) - USD ($) | 1 Months Ended | |
Mar. 31, 2019 | Sep. 30, 2019 | |
Variable Interest Entity [Abstract] | ||
Monthly servicing fee percent of outstanding financed receivables | 2.50% | |
Recourse to assets | $ 0 |
Variable Interest Entity - Summ
Variable Interest Entity - Summary of Assets and Liabilities Held by VIE (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 |
Assets | ||
Restricted cash | $ 9,250 | $ 2,047 |
Finance receivables, net | 199,452 | 202,042 |
Repossessed assets | 1,911 | 1,924 |
Total assets | 227,946 | 252,420 |
Liabilities | ||
Credit facility | 119,500 | 145,000 |
Accounts payable and accrued expenses | 5,403 | 4,916 |
Total liabilities | 122,113 | 147,535 |
Variable Interest Entity | ||
Assets | ||
Restricted cash | 9,250 | 2,047 |
Finance receivables, net | 159,950 | 187,584 |
Repossessed assets | 1,490 | |
Total assets | 170,690 | 189,631 |
Liabilities | ||
Credit facility | 116,710 | 142,619 |
Accounts payable and accrued expenses | 640 | |
Total liabilities | $ 117,350 | $ 142,619 |
Subsequent Event (Details Textu
Subsequent Event (Details Textuals) - Common Stock - USD ($) | Nov. 08, 2019 | May 31, 2019 |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Number of shares repurchased | 14,773 | |
New Stock Repurchase Program | ||
Subsequent Event [Line Items] | ||
Stock repurchase program, authorized amount | $ 8,000,000 |