Old Market Capital Reports Revenue Growth to $2.968 Million Following Amplex Acquisition

Old Market Capital Corporation (formerly Nicholas Financial, Inc.) reported significant financial developments in its latest 10-Q filing for the quarter ending December 31, 2024. The company generated total revenue of $2.968 million for the three months ended December 31, 2024, a substantial increase from zero revenue in the same period last year. For the nine months ending December 31, 2024, total revenue reached $6.415 million, reflecting the impact of the company's recent acquisition of Amplex Holdings, Inc., which has expanded its service offerings to include wireless and fiber internet services.

The financial performance of Old Market Capital showed a notable increase in operating expenses, which totaled $3.671 million for the three months ended December 31, 2024, compared to $1.767 million in the prior year. This increase was primarily driven by costs associated with the newly acquired services, including marketing, cost of services, and general administrative expenses. The company reported a loss from operations of $703,000 for the quarter, an improvement from a loss of $1.767 million in the same quarter of the previous year. The net loss attributable to common shareholders was $124,000, compared to a loss of $11.661 million in the prior year.

Strategically, Old Market Capital has undergone significant changes, including the acquisition of a controlling interest in Amplex, a broadband service provider, which was finalized on June 15, 2024. This acquisition has allowed the company to diversify its revenue streams and enhance its market presence in the telecommunications sector. As of December 31, 2024, Amplex had approximately 12,850 broadband customers, including 4,100 fiber subscribers, and over 11,000 fiber passings completed. The acquisition is expected to contribute positively to the company's future revenue growth.

Operationally, the company has seen a shift in its business model, moving away from its previous consumer finance operations, which were classified as discontinued. The sale of finance receivables and repossessed assets to Westlake Financial was completed on April 26, 2024, marking a strategic pivot for the company. The discontinued operations reported a net income of $279,000 for the three months ended December 31, 2024, compared to a loss of $9.962 million in the same period last year, indicating a significant turnaround in this segment.

Looking ahead, Old Market Capital's management expressed optimism regarding the integration of Amplex and the potential for future growth in the telecommunications market. The company plans to leverage its expanded service offerings to enhance shareholder value and improve financial performance. However, the management also acknowledged the challenges associated with the transition and the need for ongoing improvements in internal controls and financial reporting processes.