NICK Nicholas Financial Dashboard

Risks

• The extent to which COVID-19 and measures taken in response thereto impact our business, results of operations and financial condition will continue to depend on factors outside of our control. COVID-19 has had and is likely to continue to have a material impact on our results of operations and financial condition and heightens many of our known risks.
• Our success is dependent on our ability to forecast the performance of our Contracts and Direct Loans.
• We operate in an increasingly competitive market.
• An increase in market interest rates may reduce our profitability.
• We depend upon our relationships with our dealers.
• The auction proceeds we receive from the sale of repossessed vehicles and other recoveries are subject to
• fluctuation due to economic and other factors beyond our control.
• We partially rely on third parties to deliver services, and failure by those parties to provide these services or
• meet contractual requirements could have a material adverse effect on our business, financial condition and
• Our growth depends upon our ability to retain and attract a sufficient number of qualified employees.
• Natural disasters, acts of war, terrorist attacks and threats, or the escalation of military activity in response to these attacks or otherwise may negatively affect our business, financial condition, and results of operations.
• Risks Related to Regulation
• On October 5, 2017, the CFPB released the final rule Payday, Vehicle Title and Certain High-Cost Installment Loans under the Dodd Frank Act, which as adopted could potentially have a material adverse effect on our operations and financial performance.
• The CFPB has broad authority to pursue administrative proceedings and litigation for violations of federal consumer financing laws.
• Pursuant to the authority granted to it under the Dodd-Frank Act, the CFPB adopted rules that subject larger nonbank automobile finance companies to supervision and examination by the CFPB. Any such examination by the CFPB likely would have a material adverse effect on our operations and financial performance.
• We are subject to many other laws and governmental regulations, and any material violations of or changes in these laws or regulations could have a material adverse effect on our financial condition and business operations.
• Risks Related to Privacy and Cybersecurity
• We may experience problems with integrated computer systems or be unable to keep pace with developments in technology or conversion to new integrated computer systems.