CLEARWATER, Fla. — For the second time in three years, Nicholas
Financial retained a financial adviser to assist the specialty consumer finance
company's board of directors with consideration of a possible sale.

Last week, Nicholas Financial officials said their board retained
Janney Montgomery Scott as their independent financial adviser to assist the board
in evaluating possible strategic alternatives for the company. That assistance
would be for, but not limited to, the possible sale of Nicholas Financial or
certain assets, potential acquisition and expansion opportunities, and/or a
possible debt or equity financing.

Nicholas Financial also acknowledged that it has received an
unsolicited, non-binding indication of interest from a potential third-party
acquirer.

"The company cautions its shareholders and others
considering trading in its securities that its board of directors only recently
received the indication of interest, and that the process of considering this
proposal as well as other possible strategic alternatives for the company is
only in its beginning stages," Nicholas Financial officials said.

"The board of directors will proceed in an orderly and timely
manner to consider possible strategic alternatives for the company and their
implications," they continued. Accordingly, no assurances can be given as to
whether any particular strategic alternative for the company will be
recommended or undertaken or, if so, upon what terms and conditions.

"The company currently does not intend to make any further
public announcements regarding its board of directors' review of possible
strategic alternatives until this evaluation process has been completed,"
Nicholas Financial officials went on to say.

Back in January of 2011, the company was in a similar position.
After receiving interest from a third party about potentially acquiring the company,
Nicholas Financial hired Hyde Park Capital Advisors to serve as an independent
financial adviser to explore the various opportunities available.

Nicholas Financial is coming off a third-quarter performance
during its current fiscal year that saw net earnings decrease 15 percent
year-over-year.

The company posted $4.566 million in net earnings during the
quarter that closed on Dec. 31. The figure was off from the previous fiscal
year's third quarter when Nicholas Financial generated $5.363 million in net
earnings.

However, the company's Q3 revenue ticked up 4 percent
year-over-year, rising to $17.889 million from $17.140 million.

"During the three months ended December 31, our results were
affected by an increase in the net charge-off rate and an after-tax charge of $747,000
or $0.06 per share, which is related to a 5 percent withholding tax associated
with the one-time special cash dividend of $2 per share paid in December. The
withholding is required under the Canada-United States Income Tax Convention,"Nicholas
Financial chairman and chief executive officer Peter Vosotas said.

"While competition remains fierce, we are committed to
maintaining our conservative underwriting principles. We will continue to
develop additional markets and expect to continue our branch network expansion,"
Vosotas continued.

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