NYSE$RM

Regional Management Corp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a net loss due to COVID-19 reserve build and executive transition costs, but revenue increased year-over-year.

Regional Management Corp. reported a net loss of $6.3 million for Q1 2020, primarily due to a $23.9 million reserve build related to COVID-19 and $4.9 million in non-operating costs. However, total revenue increased by 17.5% year-over-year, driven by growth in net finance receivables and insurance income.

  • Net loss of $6.3 million, or $0.56 per diluted share, compared to net income of $8.1 million, or $0.67 per diluted share, in the prior-year period.
  • Total revenue increased by 17.5% year-over-year to $96.1 million.
  • Net finance receivables increased by 18.4% year-over-year to $1.1 billion.
  • Available liquidity of $110 million as of May 4, 2020.

Headline financials

Total Revenue

$96.1M

Previous: $81.7M+17.5%
EPS (adj)

$1.14

Previous: $0.67+70.1%
Capital Expenditures

-$1.01M

Previous: -$1.32M+23.2%
Free Cash Flow

-$7.34M

Previous: $6.79M-208.0%
Net Income

-$6.33M

Previous: $8.11M-178.0%
Operating Income

-$10.6M

Previous: $10.6M-200.2%
Gross Profit

$96.1M

Previous: $81.7M+17.5%
Cash & Equivalents

$14.7M

Previous: $2.33M+529.3%
Total Assets

$1.08B

Previous: $953M+13.2%
Stock-Based Comp

$1.42M

Previous: $997K+42.3%

Revenue & EPS history

Regional Management · Revenue · Quarterly

$96.1M

Q1 2020+17.5%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Regional Management · $15.4M total across 2 segments · Q3 2022

  • Insurance income, net
    $12M+27.3%
  • Other income
    $3.45M+28.2%

Forward guidance

Due to the economic uncertainty related to the COVID-19 pandemic, the company has temporarily paused its plans to open additional de novo branches and will provide an update once there is more visibility.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.0%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+1.1%

Avg return

30 days after

51%

31 / 61 earnings

Positive

+28.7%

Q4 2017

Best reaction

-34.9%

Q3 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.9%-9.6%-5.5%
Q4 2025-14.6%-13.9%-20.1%
Q3 2025-10.3%-7.4%-10.2%
Q1 2025-16.2%-13.6%-19.7%
Q4 2024-0.9%-0.7%-13.2%
Q3 2024+3.9%+2.3%+12.2%
Q2 2024-2.3%-8.5%+6.1%
Q1 2024+8.4%+20.7%+9.1%
Q4 2023-3.6%-11.1%-0.8%
Q3 2023-9.7%-11.1%-6.5%
Q2 2023-1.3%-6.8%-13.9%
Q1 2023+3.0%+4.4%+6.7%
Q4 2022-6.4%-9.8%-24.4%
Q3 2022-13.2%-15.3%-10.7%
Q2 2022+0.3%-4.4%-18.2%
Q1 2022+6.6%+1.1%+4.2%
Q4 2021+5.6%+3.7%-13.1%
Q3 2021+12.5%+14.3%+7.8%
Q2 2021+14.5%+13.8%+12.7%
Q1 2021+9.5%+12.7%+22.5%
Q4 2020+8.3%+7.5%+21.1%
Q3 2020+2.5%+16.6%+38.0%
Q2 2020+2.7%+8.2%+11.8%
Q1 2020+1.1%-6.6%+48.6%
Q4 2019+1.9%-9.3%-41.1%
Q3 2019+15.2%+13.5%+6.2%
Q2 2019+5.1%+4.5%+2.8%
Q1 2019-5.1%-3.0%-0.5%
Q4 2018+4.8%+1.5%-2.2%
Q3 2018-4.4%-4.1%-12.5%
Q2 2018+2.9%+2.8%+4.5%
Q1 2018+5.0%+7.0%+8.6%
Q4 2017+28.7%+20.4%+16.9%
Q3 2017+4.4%-1.2%+9.4%
Q2 2017-0.7%-1.2%-8.5%
Q1 2017+6.2%+4.1%+5.2%
Q4 2016-10.1%-9.5%-20.6%
Q3 2016+2.7%-0.7%+11.8%
Q2 2016+6.8%+8.5%+19.6%
Q1 2016-11.7%
Q4 2015-3.8%
Q3 2015+0.1%
Q2 2015+8.1%
Q1 2015+13.2%
Q4 2014-5.1%
Q3 2014-34.9%
Q2 2014+5.6%
Q1 2014-31.2%
Q4 2013-7.4%
Q3 2013-3.7%
Q2 2013+12.7%
Q1 2013+7.9%
Q4 2010-0.3%
Q4 2012+2.6%
Q3 2011-1.3%
Q3 2012-1.7%
Q2 2012-3.4%
Q2 2011-3.4%
Q1 2012-0.6%
Q1 2011-0.6%
Q4 2011-0.6%
Q3 2010
Q2 2010
Q1 2010

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