CLEARWATER, Fla. — Publicly traded specialty consumer
finance company Nicholas Financial watched its net earnings soften by 20
percent during the fourth quarter, pushing its year-end figure lower by double
digits.

For its fiscal year that ended March 31, the company
reported that its net earnings decreased 10 percent to $19.966 million as
compared to $22.230 million for the previous year.

Per share diluted net earnings dropped 12 percent to $1.63
as compared to $1.85 for the company's previous fiscal year.

On the positive side, Nicholas Financial reported that its
full-year revenue increased 4 percent to $70.628 million, up from $68.167
million a year earlier.

Nicholas Financial arrived at those year-end figures by way
of a fourth-quarter performance that posted similar trends.

As mentioned, the company's fourth-quarter net earnings
dropped by 20 percent to $4.865 million, down from $6.045 million during the
year-ago quarter.

Nicholas Financial's Q4 per share diluted net earnings also
decreased 20 percent to $0.40 as compared to $0.50 for previous year's quarter.

The company's fourth-quarter revenue ticked up by 3 percent
to $17.688 million, up from $17.182 million a year earlier.

To explain how the company closed its fiscal year, Nicholas
Financial chairman and chief executive officer Peter Vosotas said, "During the
three months ended March 31, our results were affected by an increase in the
net charge-off rate, an increase in operating expenses and an increase in interest
expense.

"Subject to market conditions, we intend to continue
expanding our branch network during the coming year," Vosotas continued.

The company presently operates 65 branch locations in both
the Southeast and the Midwest.

Also of note, Nicholas Financial purchased 4,240 vehicle
contracts during Q4 with an average loan amount of $10,341. While that average
loan amount was slightly higher than a year earlier ($9,742), the company
bought less contracts during the period than a year ago (4,341).

For the year, the company purchased 14,789 contracts with an
average loan amount of $10,260. Like in Q4, Nicholas Financial's year-end
figures showed higher average loan amount and less contracts than a year ago as
well.

Finally, Nicholas Financial's board of directors declared a
cash dividend of $0.12 per share on its common stock, to be paid on June 28 to
shareholders of record as of June 21.

"Subject to market conditions and profitability targets, the
company anticipates it will continue to declare quarterly cash dividends in the
future, however no assurances can be given," Nicholas Financial said.

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