Nicholas Financial Announces Appointment of Interim CEO
Nicholas Financial (NASDAQ: NICK) appointed Michael Rost as the interim CEO effective May 9, 2022, following the resignation of Douglas Marohn. Rost, a 20-year veteran of the company, previously served as Vice President of Branch Operations. The Board expressed confidence in his ability to lead the company and plans to search for a permanent CEO soon, considering Rost as a potential candidate. The company specializes in consumer finance, mainly in auto financing and associated products.
- Michael Rost's long tenure at Nicholas Financial may provide stability during the transition period.
- The Board's confidence in Rost suggests a strong internal candidate for potential permanent leadership.
- The resignation of Douglas Marohn may raise concerns about continuity in leadership.
- Management turnover could lead to uncertainties affecting investor confidence.
CLEARWATER, Fla., May 10, 2022 (GLOBE NEWSWIRE) -- Nicholas Financial, Inc. (NASDAQ: NICK) announced today the appointment of Michael Rost as interim Chief Executive Officer of the Company effective May 9, 2022. Mr. Rost has worked at the Company for more than 20 years, most recently in the position of Vice President of Branch Operations. The Board appointed Mr. Rost in connection with the resignation by Douglas Marohn from his position as the Company’s President and Chief Executive Officer.
Jeffrey Royal, the Chairman of the Company’s Board of Directors, commented: “The Board is excited to have Mike take over executive leadership on an interim basis. Mike has been successfully managing branches for many years now, growing originations while maintaining strict discipline on loan terms. We believe that Mike’s close involvement with Company operations positions him to lead the Company effectively following Doug’s departure. The Board intends to begin a search for a permanent President and Chief Executive Officer shortly, and expects that Mike will be a candidate.”
About Nicholas Financial, Inc.
Nicholas Financial, Inc. (NASDAQ:NICK) is a specialized consumer finance company, operating branch locations in both Southeastern and Midwestern U.S. States. The Company engages primarily in acquiring and servicing automobile finance installment contracts (“Contracts”) for purchases of used and new automobiles and light trucks. Additionally, Nicholas Financial originates direct consumer loans (“Direct Loans”) and sells consumer-finance related products. For an index of Nicholas Financial, Inc’s new releases or to obtain a specific release, please visit our website at www.nicholasfinancial.com.
Cautionary Note regarding Forward-Looking Statements
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, that represent the Company’s current expectations or beliefs concerning future events. Statements other than those of historical fact, as well as those identified by words such as “anticipate,” “estimate,” “intend,” “plan,” “expect,” “project,” “believe,” “may,” “will,” “should,” “would,” “could,” “probable” and any variation of the foregoing and similar expressions are forward-looking statements. Such forward-looking statements are inherently subject to risks and uncertainties. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include the following: the ongoing impact of the COVID-19 pandemic and the mitigation efforts by governments and related effects on our financial condition, business operations and liquidity, our customers, our employees, and the overall economy; recently enacted, proposed or future legislation and the manner in which it is implemented; the Company’s success in finding a suitable permanent replacement for Mr. Marohn; changes in the U.S. tax code; the nature and scope of regulatory authority, particularly discretionary authority, that may be exercised by regulators, including, but not limited to, the Securities and Exchange Commission (SEC), Department of Justice, U.S. Consumer Financial Protection Bureau, and individual state regulators having jurisdiction over the Company; the unpredictable nature of regulatory proceedings and litigation; employee misconduct or misconduct by third parties; uncertainties associated with management turnover and the effective succession of senior management; media and public characterization of consumer installment loans; labor unrest; the impact of changes in accounting rules and regulations, or their interpretation or application, which could materially and adversely affect the Company’s reported consolidated financial statements or necessitate material delays or changes in the issuance of the Company’s audited consolidated financial statements; the Company's assessment of its internal control over financial reporting; changes in interest rates; risks relating to the acquisition or sale of assets or businesses or other strategic initiatives, including increased loan delinquencies or net charge-offs, the loss of key personnel, integration or migration issues, the failure to achieve anticipated synergies, increased costs of servicing, incomplete records, and retention of customers; risks inherent in making loans, including repayment risks and value of collateral; cybersecurity threats, including the potential misappropriation of assets or sensitive information, corruption of data or operational disruption; our dependence on debt and the potential impact of limitations in the Company’s amended revolving credit facility or other impacts on the Company's ability to borrow money on favorable terms, or at all; the timing and amount of revenues that may be recognized by the Company; changes in current revenue and expense trends (including trends affecting delinquency and charge-offs); the impact of extreme weather events and natural disasters; changes in the Company’s markets and general changes in the economy (particularly in the markets served by the Company). All forward-looking statements and cautionary statements included in this document are made as of the date hereof based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement or cautionary statement.
| Contact: | Irina Nashtatik | NASDAQ: NICK | ||||
| Nicholas Financial, Inc. Corporate Headquarters 2454 McMullen-Booth Rd. Building C, Suite 501 Clearwater, FL 33759 | | CFO Ph # (727)-726-0763 | Web site: www.nicholasfinancial.com | |||
FAQ
Who has been appointed as the interim CEO of Nicholas Financial?
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