NYSE$RM

Regional Management Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced second quarter results with net income of $6.0 million and diluted earnings per share of $0.63.

Regional Management Corp. reported strong second-quarter results, exceeding expectations with $6.0 million in net income and $0.63 in diluted earnings per share. Loan demand remained strong, driving high-quality portfolio growth and near-record quarterly revenue. The company maintained a conservative credit posture and managed expenses effectively, lowering the annualized operating expense ratio to 13.6%.

  • Net income for the second quarter of 2023 was $6.0 million and diluted earnings per share was $0.63.
  • Net finance receivables as of June 30, 2023 were $1.7 billion, an increase of $163.3 million, or 10.7%, from the prior-year period.
  • Total revenue for the second quarter of 2023 was $133.5 million, an increase of $10.6 million, or 8.6%, from the prior-year period.
  • As of June 30, 2023, 30+ day contractual delinquencies totaled $116.3 million, or 6.9% of net finance receivables, an improvement of 30 basis points compared to March 31, 2023.

Headline financials

Total Revenue

$133M

Previous: $123M+8.6%
EPS (adj)

$0.63

Previous: $1.24-49.2%
Operating expense ratio

13.6%

Previous: 14.7%-7.5%
Capital Expenditures

-$2.79M

Previous: -$2M-39.6%
Free Cash Flow

$3.23M

Previous: $9.98M-67.6%
Net Income

$6.02M

Previous: $12M-49.7%
Operating Income

$10.2M

Previous: $9.34M+8.7%
Gross Profit

$133M

Previous: $123M+8.6%
Cash & Equivalents

$10.3M

Previous: $7.93M+30.3%
Total Assets

$1.72B

Previous: $1.55B+11.3%
Stock-Based Comp

$2.34M

Previous: $2.75M-15.0%

Revenue & EPS history

Regional Management · Revenue · Quarterly

$133M

Q2 2023+8.6%vs Q2 2022
Beat estimate in 9 of 14 quarters(64%)
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

While recent economic data indicates a strong labor market, moderating inflation, and real wage growth, the company continues to prioritize higher credit quality over rapid portfolio growth and remains prepared to lean back into growth when justified by economic conditions and portfolio performance.

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 2023

Historical avgQ2 2023

+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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