NYSE$RM

Regional Management Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Net income and diluted earnings per share increased, driven by growth in customer accounts, originations, and revenue.

Regional Management Corp. reported a strong second quarter with net income of $8.4 million and diluted EPS of $0.86, a 37% increase from the prior-year period. Revenue grew by 7% to $143 million, driven by a 5% increase in ending net receivables and an 80 bps increase in total revenue yield. The company maintained expense discipline with an operating expense ratio of 13.8%.

  • Net income for the second quarter of 2024 was $8.4 million and diluted earnings per share was $0.86, up 37% from $0.63 in the prior-year period.
  • Net finance receivables as of June 30, 2024 were $1.8 billion, an increase of $84.8 million, or 5.0%, from the prior-year period.
  • Total revenue for the second quarter of 2024 was $143.0 million, an increase of $9.5 million, or 7.1%, from the prior-year period.
  • As of June 30, 2024, 30+ day contractual delinquencies totaled $122.7 million, or 6.9% of net finance receivables, a 20 basis point improvement sequentially and comparable to June 30, 2023.

Headline financials

Total Revenue

$143M

Previous: $133M+7.1%
EPS

$0.86

Previous: $0.63+36.5%
Net finance receivables growth

1773743000.0%

No prior period
Net credit loss rate

12.7%

No prior period
Operating expense ratio

13.8%

Previous: 13.6%+1.5%
Total originations

$426M

No prior period
Total revenue yield

32.7%

No prior period
Allowance for credit losses rate

10.5%

No prior period
30+ day delinquencies

6.9%

No prior period
Large loan delinquency rate

6.0%

No prior period
Small loan delinquency rate

9.1%

No prior period
Number of branches

343

No prior period
Book value per share

$33.96

No prior period
Capital Expenditures

-$2.24M

Previous: -$2.79M+20.0%
Free Cash Flow

$6.21M

Previous: $3.23M+92.3%
Net Income

$8.45M

Previous: $6.02M+40.2%
Operating Income

-$41.6M

Previous: $10.2M-509.7%
Gross Profit

$89.2M

Previous: $133M-33.2%
Cash & Equivalents

$4.32M

Previous: $10.3M-58.2%
Total Assets

$1.79B

Previous: $1.72B+3.8%
Stock-Based Comp

$3.27M

Previous: $2.34M+39.9%

Revenue & EPS history

Regional Management · Revenue · Quarterly

$143M

Q2 2024+7.1%vs Q2 2023
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

The company expects credit losses to improve in the second half of the year and plans to increase investment in strategic initiatives and portfolio growth, including opening ten new branch locations and expanding higher-margin and auto-secured loan portfolios.

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 2024

Historical avgQ2 2024

+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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