- Record net income of $25.5 million and
diluted earnings per share of $2.31 -
- Core net finance receivables and total
revenue each grew 1.7% year-over-year -
- Historically low 30+ day contractual
delinquencies of 4.3% as of March 31, 2021 -
- Raises quarterly cash dividend by 25% to
$0.25 per common share and announces a new $30 million stock
repurchase program -
Regional Management Corp. (NYSE: RM), a diversified consumer
finance company, today announced results for the first quarter
ended March 31, 2021.
“We had a fantastic start to 2021, as we built off of our strong
performance from the prior year to generate record quarterly
earnings,” said Robert W. Beck, President and Chief Executive
Officer of Regional Management Corp. “Our growth initiatives helped
to reduce our typical first quarter seasonal liquidation and the
impact of the new stimulus payments, which in turn drove strong
revenue performance. At the same time, we maintained a superior
credit profile and historically low 30+ day delinquencies, allowing
us to release over $10 million of our allowance for credit losses,
including more than $6 million of COVID-19 reserves. In addition,
we continued to prudently manage our expenses while also investing
in our digital initiatives and growth strategies, positioning us
well to expand our portfolio through the remainder of 2021 and
beyond.”
“We have maintained our momentum going into the second quarter,
having recently extended our operations to Illinois and
strengthened our balance sheet by expanding our warehouse facility
capacity, further enabling us to fund our long-term growth strategy
and to return excess capital to shareholders,” added Mr. Beck. “To
that end, we are very pleased to announce an increase of our
quarterly dividend by 25% to $0.25 per share, the completion of our
$30 million stock repurchase program that began in the fourth
quarter, and the authorization by our Board of Directors of a new
$30 million stock repurchase program. Moving ahead, we are focused
on maintaining our strong credit profile and executing on our
omni-channel growth strategies, which include investment in
geographic expansion, digital innovation, and the development of
new products and channels. We continue to be well-positioned to
further expand our market share and to deliver additional long-term
value to our shareholders.”
First Quarter 2021 Highlights
- Net income for the first quarter of 2021 was $25.5 million and
diluted earnings per share was $2.31, compared to net loss of $6.3
million and diluted loss per share of $0.56 in the prior-year
period.
- Net finance receivables as of March 31, 2021 were $1.1 billion,
an increase of 0.3%, or $3.3 million, from the prior-year period.
- Total core small and large loan net finance receivables
increased $17.8 million, or 1.7%, compared to the prior-year
period.
- Large loan net finance receivables of $719.4 million increased
$86.8 million, or 13.7%, from the prior-year period and represented
65.1% of the total loan portfolio. Small loan net finance
receivables were $371.2 million, a decrease of 15.7% from the
prior-year period.
- Originated $231.4 million of loans in the first quarter of
2021, an increase of $2.2 million, or 0.9%, from the prior-year
period.
- Total revenue for the first quarter of 2021 was $97.7 million,
an increase of $1.7 million, or 1.7%, from the prior-year period.
- Interest and fee income increased $0.3 million, or 0.3%,
primarily due to improved credit performance across the portfolio,
which resulted in fewer loans in non-accrual status and fewer
interest accrual reversals. These benefits were partially offset by
the intended product mix shift toward large loans and the portfolio
composition shift toward higher credit quality customers with
slightly lower interest rates due to enhanced credit standards
during the pandemic.
- Insurance income, net increased $2.0 million, or 34.2%, driven
by an increase in premium revenue and a decrease in unemployment
insurance expense due to COVID-19 reserves taken in the prior-year
period. These benefits were offset by higher life insurance
claims.
- Other income decreased $0.7 million, or 21.1%, driven by lower
late fees on low delinquency levels.
- Provision for credit losses for the first quarter of 2021 was
$11.4 million, a decrease of $38.2 million, or 77.1%, from the
prior-year period. The provision for credit losses for the first
quarter of 2021 included releases in the allowance for credit
losses of $6.6 million related to the expected economic impact of
the COVID-19 pandemic and $3.8 million related to portfolio
liquidation.
- Allowance for credit losses was $139.6 million as of March 31,
2021, including a $23.8 million allowance for credit losses
associated with COVID-19. The company’s macroeconomic model assumes
an unemployment rate under 10% at the end of 2021.
- Annualized net credit losses as a percentage of average net
finance receivables for the first quarter of 2021 were 7.7%, a 280
basis point improvement compared to 10.5% in the prior-year
period.
- As of March 31, 2021, 30+ day contractual delinquencies totaled
$47.7 million, or 4.3% of net finance receivables, compared to 6.6%
in the prior-year period. As of April 30, 2021, 30+ day contractual
delinquencies further improved to $41.0 million, or 3.7% of net
finance receivables. As of March 31, 2021, approximately 70% of the
company’s total portfolio had been originated since April 2020, the
vast majority of which was subject to enhanced credit standards
deployed following the outset of the pandemic.
- General and administrative expenses for the first quarter of
2021 were $45.8 million, an improvement of $0.4 million, or 0.9%,
from the prior-year period, primarily driven by reductions in
executive transition costs and operating costs related to COVID-19,
partially offset by an increase in personnel expenses, marketing
expenses, and investment in digital and technological capabilities
to support the company’s growth initiatives.
- The operating expense ratio (annualized general and
administrative expenses as a percentage of average net finance
receivables) for the first quarter of 2021 was 16.3%, an
improvement of 20 basis points compared to the prior-year
period.
- As of March 31, 2021, the company had total unused capacity on
its revolving credit facilities of $573 million, subject to the
borrowing base, and available liquidity of $207 million, including
unrestricted cash on hand and immediate availability to draw down
cash from its revolving credit facilities.
- In the first quarter of 2021, the company repurchased 352,183
shares of its common stock at a weighted-average price of $33.57
per share under the company’s $30 million stock repurchase program.
The company completed the $30 million stock repurchase program in
May 2021, having repurchased 951,841 shares of its common stock at
a weighted-average price of $31.52 per share.
Second Quarter 2021 Dividend and New Stock Repurchase
Program
The company’s Board of Directors has declared a dividend of
$0.25 per common share for the second quarter of 2021. The dividend
is 25% higher than the prior quarter’s dividend and will be paid on
June 15, 2021 to shareholders of record as of the close of business
on May 26, 2021.
The declaration and payment of any future dividend is subject to
the discretion of the Board of Directors and will depend on a
variety of factors, including the company’s financial condition and
results of operations.
In addition, the company’s Board of Directors has authorized a
new stock repurchase program allowing for the repurchase of up to
$30 million of its outstanding common stock. The authorization is
effective immediately and will continue through April 29, 2023.
Share repurchases under the stock repurchase program may be made
in the open market at prevailing market prices, through privately
negotiated transactions, or through other structures in accordance
with applicable federal securities laws, at times and in amounts as
management deems appropriate. The timing and the amount of any
common stock repurchases will be determined by the company’s
management based on its evaluation of market conditions, the
company’s liquidity needs, legal and contractual requirements and
restrictions (including covenants in the company’s credit
agreements), share price, and other factors. Repurchases of common
stock may be made under a Rule 10b5-1 plan, which would permit
common stock to be repurchased when the company might otherwise be
precluded from doing so under insider trading laws. The repurchase
program does not obligate the company to purchase any particular
number of shares and may be suspended, modified, or discontinued at
any time without prior notice.
Liquidity and Capital Resources
As of March 31, 2021, the company had net finance receivables of
$1.1 billion and outstanding long-term debt of $752.2 million
($750.6 million of outstanding debt and $1.6 million of interest
payable), consisting of:
- $156.5 million on its $640.0 million senior revolving credit
facility,
- $36.4 million on its $125.0 million revolving warehouse credit
facility, and
- $559.3 million through its asset-backed securitizations.
The company’s unused capacity on its revolving credit facilities
(subject to the borrowing base) was $573 million, or 74.9%, as of
March 31, 2021.
The company had a funded debt-to-equity ratio of 2.7 to 1.0 and
a stockholders’ equity ratio of 25.8%, each as of March 31, 2021.
On a non-GAAP basis, the company had a funded debt-to-tangible
equity ratio of 2.7 to 1.0, as of March 31, 2021. Please refer to
the reconciliations of non-GAAP measures to comparable GAAP
measures included at the end of this press release.
Branch Network
As of March 31, 2021, the company’s branch network consisted of
365 locations, and in April 2021, the company opened its first
branch in Illinois. The company continues to expect to open 15 to
20 net new branches during the full year 2021, subject to the
economic environment.
Conference Call Information
Regional Management Corp. will host a conference call and
webcast today at 5:00 PM ET to discuss these results.
The dial-in number for the conference call is (855) 327-6837
(toll-free) or (631) 891-4304 (direct). Please dial the number 10
minutes prior to the scheduled start time.
*** A supplemental slide presentation will be made available
on Regional’s website prior to the earnings call at
www.RegionalManagement.com. ***
In addition, a live webcast of the conference call will be
available on Regional’s website at www.RegionalManagement.com.
A webcast replay of the call will be available at
www.RegionalManagement.com for one year following the call.
About Regional Management Corp.
Regional Management Corp. (NYSE: RM) is a diversified consumer
finance company that provides attractive, easy-to-understand
installment loan products primarily to customers with limited
access to consumer credit from banks, thrifts, credit card
companies, and other lenders. Regional Management operates under
the name “Regional Finance” in 366 branch locations across 12
states in the Southeastern, Southwestern, Mid-Atlantic, and
Midwestern United States, as of April 2021. Most of its loan
products are secured, and each is structured on a fixed rate, fixed
term basis with fully amortizing equal monthly installment
payments, repayable at any time without penalty. Regional
Management sources loans through its multiple channel platform,
which includes branches, centrally-managed direct mail campaigns,
digital partners, retailers, and its consumer website. For more
information, please visit www.RegionalManagement.com.
Forward-Looking Statements
This press release may contain various “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are not statements
of historical fact but instead represent Regional Management
Corp.’s expectations or beliefs concerning future events.
Forward-looking statements include, without limitation, statements
concerning future plans, objectives, goals, projections,
strategies, events, or performance, and underlying assumptions and
other statements related thereto. Words such as “may,” “will,”
“should,” “likely,” “anticipates,” “expects,” “intends,” “plans,”
“projects,” “believes,” “estimates,” “outlook,” and similar
expressions may be used to identify these forward-looking
statements. Such forward-looking statements speak only as of the
date on which they were made and are about matters that are
inherently subject to risks and uncertainties, many of which are
outside of the control of Regional Management. As a result, actual
performance and results may differ materially from those
contemplated by these forward-looking statements. Therefore,
investors should not place undue reliance on forward-looking
statements.
Factors that could cause actual results or performance to differ
from the expectations expressed or implied in forward-looking
statements include, but are not limited to, the following: risks
related to Regional Management’s business, including the COVID-19
pandemic and its impact on Regional Management’s operations and
financial condition; managing growth effectively, implementing
Regional Management’s growth strategy, and opening new branches as
planned; Regional Management’s convenience check strategy; Regional
Management’s policies and procedures for underwriting, processing,
and servicing loans; Regional Management’s ability to collect on
its loan portfolio; Regional Management’s insurance operations;
exposure to credit risk and repayment risk, which risks may
increase in light of adverse or recessionary economic conditions;
the implementation of new underwriting models and processes,
including as to the effectiveness of new custom scorecards; changes
in the competitive environment in which Regional Management
operates or a decrease in the demand for its products; the
geographic concentration of Regional Management’s loan portfolio;
the failure of third-party service providers, including those
providing information technology products; changes in economic
conditions in the markets Regional Management serves, including
levels of unemployment and bankruptcies; the ability to achieve
successful acquisitions and strategic alliances; the ability to
make technological improvements as quickly as competitors; security
breaches, cyber-attacks, failures in information systems, or
fraudulent activity; the ability to originate loans; reliance on
information technology resources and providers, including the risk
of prolonged system outages; changes in current revenue and expense
trends, including trends affecting delinquencies and credit losses;
changes in operating and administrative expenses; the departure,
transition, or replacement of key personnel; the ability to timely
and effectively implement, transition to, and maintain the
necessary information technology systems, infrastructure,
processes, and controls to support Regional Management’s operations
and initiatives; changes in interest rates; existing sources of
liquidity may become insufficient or access to these sources may
become unexpectedly restricted; exposure to financial risk due to
asset-backed securitization transactions; risks related to
regulation and legal proceedings, including changes in laws or
regulations or in the interpretation or enforcement of laws or
regulations; changes in accounting standards, rules, and
interpretations and the failure of related assumptions and
estimates, including those associated with the implementation of
CECL accounting; the impact of changes in tax laws, guidance, and
interpretations, including the timing and amount of revenues that
may be recognized; risks related to the ownership of Regional
Management’s common stock, including volatility in the market price
of shares of Regional Management’s common stock; the timing and
amount of future cash dividend payments; and anti-takeover
provisions in Regional Management’s charter documents and
applicable state law. The COVID-19 pandemic may also magnify many
of these risks and uncertainties.
The foregoing factors and others are discussed in greater detail
in Regional Management’s filings with the Securities and Exchange
Commission. Regional Management will not update or revise
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect the occurrence of
unanticipated events or the non-occurrence of anticipated events,
whether as a result of new information, future developments, or
otherwise, except as required by law. Regional Management is not
responsible for changes made to this document by wire services or
Internet services.
Regional Management Corp. and
Subsidiaries
Consolidated Statements of
Income
(Unaudited)
(in thousands, except per
share amounts)
Better (Worse)
1Q 21
1Q 20
$
%
Revenue
Interest and fee income
$
87,279
$
86,997
$
282
0.3
%
Insurance income, net
7,985
5,949
2,036
34.2
%
Other income
2,467
3,128
(661
)
(21.1
)%
Total revenue
97,731
96,074
1,657
1.7
%
Expenses
Provision for credit losses
11,362
49,522
38,160
77.1
%
Personnel
28,851
29,511
660
2.2
%
Occupancy
6,020
5,227
(793
)
(15.2
)%
Marketing
2,710
1,686
(1,024
)
(60.7
)%
Other
8,262
9,819
1,557
15.9
%
Total general and administrative
45,843
46,243
400
0.9
%
Interest expense
7,135
10,159
3,024
29.8
%
Income (loss) before income taxes
33,391
(9,850
)
43,241
439.0
%
Income taxes
7,869
(3,525
)
(11,394
)
(323.2
)%
Net income (loss)
$
25,522
$
(6,325
)
$
31,847
503.5
%
Net income (loss) per common share:
Basic
$
2.42
$
(0.58
)
$
3.00
517.2
%
Diluted
$
2.31
$
(0.56
)
$
2.87
512.5
%
Weighted-average common shares
outstanding:
Basic
10,543
10,897
354
3.2
%
Diluted
11,066
11,253
187
1.7
%
Return on average assets (annualized)
9.3
%
(2.3
)%
Return on average equity (annualized)
36.7
%
(9.4
)%
Regional Management Corp. and
Subsidiaries
Consolidated Balance
Sheets
(Unaudited)
(in thousands, except par
value amounts)
Increase (Decrease)
1Q 21
1Q 20
$
%
Assets
Cash
$
7,226
$
14,668
$
(7,442
)
(50.7
)%
Net finance receivables
1,105,603
1,102,285
3,318
0.3
%
Unearned insurance premiums
(34,751
)
(28,183
)
(6,568
)
(23.3
)%
Allowance for credit losses
(139,600
)
(142,400
)
2,800
2.0
%
Net finance receivables, less unearned
insurance premiums and allowance for credit losses
931,252
931,702
(450
)
(0.0
)%
Restricted cash
79,012
54,649
24,363
44.6
%
Lease assets
27,652
26,729
923
3.5
%
Deferred tax asset
14,366
20,025
(5,659
)
(28.3
)%
Property and equipment
13,046
15,155
(2,109
)
(13.9
)%
Intangible assets
8,926
9,144
(218
)
(2.4
)%
Other assets
16,815
6,818
9,997
146.6
%
Total assets
$
1,098,295
$
1,078,890
$
19,405
1.8
%
Liabilities and Stockholders’
Equity
Liabilities:
Long-term debt
$
752,200
$
777,847
$
(25,647
)
(3.3
)%
Unamortized debt issuance costs
(8,196
)
(8,581
)
385
4.5
%
Net long-term debt
744,004
769,266
(25,262
)
(3.3
)%
Accounts payable and accrued expenses
40,943
29,459
11,484
39.0
%
Lease liabilities
29,712
28,803
909
3.2
%
Total liabilities
814,659
827,528
(12,869
)
(1.6
)%
Stockholders’ equity:
Preferred stock ($0.10 par value, 100,000
shares authorized, none issued or outstanding)
—
—
—
—
Common stock ($0.10 par value, 1,000,000
shares authorized, 14,063 shares issued and 10,792 shares
outstanding at March 31, 2021 and 13,659 shares issued and 11,175
shares outstanding at March 31, 2020)
1,406
1,366
40
2.9
%
Additional paid-in-capital
105,493
103,488
2,005
1.9
%
Retained earnings
250,659
196,582
54,077
27.5
%
Treasury stock (3,271 shares at March 31,
2021 and 2,484 shares at March 31, 2020)
(73,922
)
(50,074
)
(23,848
)
(47.6
)%
Total stockholders’ equity
283,636
251,362
32,274
12.8
%
Total liabilities and stockholders’
equity
$
1,098,295
$
1,078,890
$
19,405
1.8
%
Regional Management Corp. and
Subsidiaries
Selected Financial
Data
(Unaudited)
(in thousands, except per
share amounts)
Net Finance Receivables by
Product
1Q 21
4Q 20
QoQ $ Inc (Dec)
QoQ % Inc (Dec)
1Q 20
YoY $ Inc (Dec)
YoY % Inc (Dec)
Small loans
$
371,188
$
403,062
$
(31,874
)
(7.9
)%
$
440,282
$
(69,094
)
(15.7
)%
Large loans
719,441
715,210
4,231
0.6
%
632,593
86,848
13.7
%
Total core loans
1,090,629
1,118,272
(27,643
)
(2.5
)%
1,072,875
17,754
1.7
%
Automobile loans
3,033
3,889
(856
)
(22.0
)%
7,532
(4,499
)
(59.7
)%
Retail loans
11,941
14,098
(2,157
)
(15.3
)%
21,878
(9,937
)
(45.4
)%
Total net finance receivables
$
1,105,603
$
1,136,259
$
(30,656
)
(2.7
)%
$
1,102,285
$
3,318
0.3
%
Number of branches at period end
365
365
—
0.0
%
368
(3
)
(0.8
)%
Average net finance receivables per
branch
$
3,029
$
3,113
$
(84
)
(2.7
)%
$
2,995
$
34
1.1
%
Averages and Yields
1Q 21
4Q 20
1Q 20
Average Net Finance
Receivables
Average Yield
(Annualized)
Average Net Finance
Receivables
Average Yield
(Annualized)
Average Net Finance
Receivables
Average Yield
(Annualized)
Small loans
$
389,138
37.5
%
$
387,688
38.4
%
$
458,132
36.7
%
Large loans
717,572
27.9
%
683,520
28.5
%
633,510
27.5
%
Automobile loans
3,480
13.0
%
4,360
14.3
%
8,618
13.5
%
Retail loans
13,170
17.8
%
14,908
18.3
%
23,056
17.8
%
Total interest and fee yield
$
1,123,360
31.1
%
$
1,090,476
31.9
%
$
1,123,316
31.0
%
Total revenue yield
$
1,123,360
34.8
%
$
1,090,476
35.7
%
$
1,123,316
34.2
%
Components of Increase in
Interest and Fee Income
1Q 21 Compared to 1Q
20
Increase (Decrease)
Volume
Rate
Volume & Rate
Total
Small loans
$
(6,334
)
$
850
$
(128
)
$
(5,612
)
Large loans
5,788
641
85
6,514
Automobile loans
(173
)
(11
)
6
(178
)
Retail loans
(441
)
(2
)
1
(442
)
Product mix
1,163
(1,199
)
36
—
Total increase in interest and fee
income
$
3
$
279
$
-
$
282
Net Loans Originated (1)
(2)
1Q 21
4Q 20
QoQ $ Inc (Dec)
QoQ % Inc (Dec)
1Q 20
YoY $ Inc (Dec)
YoY % Inc (Dec)
Small loans
$
98,817
$
159,985
$
(61,168
)
(38.2
)%
$
120,024
$
(21,207
)
(17.7
)%
Large loans
130,821
196,867
(66,046
)
(33.5
)%
105,648
25,173
23.8
%
Retail loans
1,780
1,891
(111
)
(5.9
)%
3,573
(1,793
)
(50.2
)%
Total net loans originated
$
231,418
$
358,743
$
(127,325
)
(35.5
)%
$
229,245
$
2,173
0.9
%
(1) Represents the balance of loan origination and refinancing
net of unearned finance charges. (2) The company ceased originating
automobile purchase loans in November 2017.
Other Key Metrics
1Q 21
4Q 20
1Q 20
Net credit losses
$
21,762
$
18,700
$
29,422
Percentage of average net finance
receivables (annualized)
7.7
%
6.9
%
10.5
%
Provision for loan losses (1)
$
11,362
$
24,700
$
49,522
Percentage of average net finance
receivables (annualized)
4.0
%
9.1
%
17.6
%
Percentage of total revenue
11.6
%
25.3
%
51.5
%
General and administrative expenses (2)
(3)
$
45,843
$
44,794
$
46,243
Percentage of average net finance
receivables (annualized)
16.3
%
16.4
%
16.5
%
Percentage of total revenue
46.9
%
46.0
%
48.1
%
Same store results (4):
Net finance receivables at period-end
$
1,100,840
$
1,125,507
$
1,093,701
Net finance receivable growth rate
0.2
%
0.1
%
17.6
%
Number of branches in calculation
356
347
351
(1) Includes COVID-19 pandemic impacts to provision for credit
losses of $(6,600), $(1,500), and $23,900 for 1Q 21, 4Q 20, and 1Q
20, respectively. (2) Includes non-operating executive transition
costs of $3,066 for 1Q 20. (3) Includes non-operating loan
management system outage costs of $720 for 1Q 20. (4) Same store
sales reflect the change in year-over-year sales for the comparable
branch base. The comparable branch base includes those branches
open for at least one year.
Contractual Delinquency by
Aging
1Q 21
4Q 20
1Q 20
Allowance for credit losses (1)
$
139,600
12.6
%
$
150,000
13.2
%
$
142,400
12.9
%
Current
1,010,859
91.4
%
990,467
87.2
%
931,032
84.4
%
1 to 29 days past due
47,024
4.3
%
85,342
7.5
%
98,896
9.0
%
Delinquent accounts:
30 to 59 days
11,252
1.0
%
18,381
1.6
%
20,907
1.9
%
60 to 89 days
9,808
0.9
%
14,955
1.3
%
16,456
1.5
%
90 to 119 days
8,682
0.8
%
10,496
0.9
%
11,889
1.1
%
120 to 149 days
8,717
0.8
%
9,085
0.8
%
12,059
1.1
%
150 to 179 days
9,261
0.8
%
7,533
0.7
%
11,046
1.0
%
Total contractual delinquency
$
47,720
4.3
%
$
60,450
5.3
%
$
72,357
6.6
%
Total net finance receivables
$
1,105,603
100.0
%
$
1,136,259
100.0
%
$
1,102,285
100.0
%
1 day and over past due
$
94,744
8.6
%
$
145,792
12.8
%
$
171,253
15.6
%
Contractual Delinquency by
Product
1Q 21
4Q 20
1Q 20
Small loans
$
22,582
6.1
%
$
27,703
6.9
%
$
37,662
8.6
%
Large loans
24,177
3.4
%
31,259
4.4
%
32,201
5.1
%
Automobile loans
227
7.5
%
296
7.6
%
508
6.7
%
Retail loans
734
6.1
%
1,192
8.5
%
1,986
9.1
%
Total contractual delinquency
$
47,720
4.3
%
$
60,450
5.3
%
$
72,357
6.6
%
(1) Includes incremental COVID-19 allowance for credit losses of
$23,800, $30,400, and $23,900 in 1Q 21, 4Q 20, and 1Q 20,
respectively.
Income Statement Quarterly
Trend
1Q 20
2Q 20
3Q 20
4Q 20
1Q 21
QoQ $ B(W)
YoY $ B(W)
Revenue
Interest and fee income
$
86,997
$
80,067
$
81,306
$
86,845
$
87,279
$
434
$
282
Insurance income, net
5,949
7,650
6,861
7,889
7,985
96
2,036
Other income
3,128
2,133
2,371
2,710
2,467
(243
)
(661
)
Total revenue
96,074
89,850
90,538
97,444
97,731
287
1,657
Expenses
Provision for credit losses
49,522
27,499
22,089
24,700
11,362
13,338
38,160
Personnel
29,511
26,863
26,207
26,979
28,851
(1,872
)
660
Occupancy
5,227
5,608
5,894
5,900
6,020
(120
)
(793
)
Marketing
1,686
1,438
3,249
3,984
2,710
1,274
(1,024
)
Other
9,819
7,616
8,404
7,931
8,262
(331
)
1,557
Total general and administrative
46,243
41,525
43,754
44,794
45,843
(1,049
)
400
Interest expense
10,159
9,137
9,300
9,256
7,135
2,121
3,024
Income (loss) before income taxes
(9,850
)
11,689
15,395
18,694
33,391
14,697
43,241
Income taxes
(3,525
)
4,219
4,157
4,347
7,869
(3,522
)
(11,394
)
Net income (loss)
$
(6,325
)
$
7,470
$
11,238
$
14,347
$
25,522
$
11,175
$
31,847
Net income (loss) per common share:
Basic
$
(0.58
)
$
0.68
$
1.02
$
1.32
$
2.42
$
1.10
$
3.00
Diluted
$
(0.56
)
$
0.68
$
1.01
$
1.28
$
2.31
$
1.03
$
2.87
Weighted-average shares outstanding:
Basic
10,897
10,962
10,977
10,882
10,543
339
354
Diluted
11,253
11,013
11,092
11,228
11,066
162
187
Net interest margin
$
85,915
$
80,713
$
81,238
$
88,188
$
90,596
$
2,408
$
4,681
Net credit margin
$
36,393
$
53,214
$
59,149
$
63,489
$
79,234
$
15,745
$
42,841
Balance Sheet Quarterly
Trend
1Q 20
2Q 20
3Q 20
4Q 20
1Q 21
QoQ $ Inc (Dec)
YoY $ Inc (Dec)
Total assets
$
1,078,890
$
1,000,225
$
1,037,559
$
1,103,856
$
1,098,295
$
(5,561
)
$
19,405
Net finance receivables
$
1,102,285
$
1,022,635
$
1,059,554
$
1,136,259
$
1,105,603
$
(30,656
)
$
3,318
Allowance for credit losses
$
142,400
$
142,000
$
144,000
$
150,000
$
139,600
$
(10,400
)
$
(2,800
)
Long-term debt
$
777,847
$
683,865
$
700,139
$
768,909
$
752,200
$
(16,709
)
$
(25,647
)
Other Key Metrics Quarterly
Trend
1Q 20
2Q 20
3Q 20
4Q 20
1Q 21
QoQ Inc (Dec)
YoY Inc (Dec)
Interest and fee yield (annualized)
31.0
%
30.5
%
31.5
%
31.9
%
31.1
%
(0.8
)%
0.1
%
Efficiency ratio (1)
48.1
%
46.2
%
48.3
%
46.0
%
46.9
%
0.9
%
(1.2
)%
Operating expense ratio (2)
16.5
%
15.8
%
17.0
%
16.4
%
16.3
%
(0.1
)%
(0.2
)%
30+ contractual delinquency
6.6
%
4.8
%
4.7
%
5.3
%
4.3
%
(1.0
)%
(2.3
)%
Net credit loss ratio (3)
10.5
%
10.6
%
7.8
%
6.9
%
7.7
%
0.8
%
(2.8
)%
Book value per share
$
22.49
$
23.11
$
24.03
$
24.89
$
26.28
$
1.39
$
3.79
(1) General and administrative expenses as a percentage of total
revenue. (2) Annualized general and administrative expenses as a
percentage of average net finance receivables. (3) Annualized net
credit losses as a percentage of average net finance
receivables.
Non-GAAP Financial Measures
In addition to financial measures presented in accordance with
generally accepted accounting principles (“GAAP”), this press
release contains certain non-GAAP financial measures. The company’s
management utilizes non-GAAP measures as additional metrics to aid
in, and enhance, its understanding of the company’s financial
results. Tangible equity and funded debt-to-tangible equity ratio
are non-GAAP measures that adjust GAAP measures to exclude
intangible assets. Management uses these equity measures to
evaluate and manage the company’s capital and leverage position.
The company also believes that these equity measures are commonly
used in the financial services industry and provide useful
information to users of the company’s financial statements in the
evaluation of its capital and leverage position.
This non-GAAP financial information should be considered in
addition to, not as a substitute for or superior to, measures of
financial performance prepared in accordance with GAAP. In
addition, the company’s non-GAAP measures may not be comparable to
similarly titled non-GAAP measures of other companies. The
following tables provide a reconciliation of GAAP measures to
non-GAAP measures.
1Q 21
Long-term debt
$
752,200
Total stockholders' equity
283,636
Less: Intangible assets
8,926
Tangible equity (non-GAAP)
$
274,710
Funded debt-to-equity ratio
2.7
x
Funded debt-to-tangible equity ratio
(non-GAAP)
2.7
x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210504006197/en/
Investor Relations Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
Regional Management (NYSE:RM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Regional Management (NYSE:RM)
Historical Stock Chart
From Sep 2023 to Sep 2024