NYSE$RM

Regional Management Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Announced second quarter 2021 results, featuring net income of $20.2 million and diluted earnings per share of $1.87.

Regional Management Corp. reported a strong second quarter with a net income of $20.2 million and diluted earnings per share of $1.87. The company saw a 10.9% year-over-year increase in revenue and a 17.3% growth in core net finance receivables. Loan originations reached a record $373 million, driving net receivables to an all-time high of $1.2 billion.

  • Net income for the second quarter of 2021 was $20.2 million and diluted earnings per share was $1.87.
  • Net finance receivables as of June 30, 2021 were $1.2 billion, an increase of 15.7% from the prior-year period.
  • Originated $372.8 million of loans in the second quarter of 2021, an increase of 116.5% from the prior-year period.
  • Total revenue for the second quarter of 2021 was $99.7 million, an increase of 10.9% from the prior-year period.

Headline financials

Total Revenue

$99.7M

Previous: $89.9M+10.9%
EPS (adj)

$1.87

Previous: $0.68+175.0%
Capital Expenditures

-$1.05M

Previous: -$2.62M+59.9%
Free Cash Flow

$19.1M

Previous: $4.85M+294.4%
Net Income

$20.2M

Previous: $7.47M+170.0%
Operating Income

$20.3M

Previous: $12.6M+61.6%
Gross Profit

$99.7M

Previous: $89.9M+10.9%
Cash & Equivalents

$6.09M

Previous: $8.97M-32.2%
Total Assets

$1.19B

Previous: $1B+19.1%
Stock-Based Comp

$1.87M

Previous: $1.06M+76.9%

Revenue & EPS history

Regional Management · Revenue · Quarterly

$99.7M

Q2 2021+10.9%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Regional Management · $10.9M total across 2 segments · Q2 2021

  • Insurance income, net
    $8.66M
  • Other income
    $2.23M

Forward guidance

The company provided a full year 2021 outlook for net income, expecting it to be between $75 million and $80 million.

Tailwinds

  • Current economic conditions remain steady.
  • The full year 2021 net credit loss rate will be approximately 7.0%.
  • The company will build its allowance for credit losses in the second half of the year due to net finance receivables growth.
  • The allowance for credit losses rate will normalize to pre-pandemic levels of approximately 10.8% by the end of the year.
  • General and administrative expenses will increase in the second half of the year as the company continues to invest in its growth initiatives, including increased marketing expenses associated with digital lending efforts.

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 Q2 2021

Historical avgQ2 2021

+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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