NYSE$RM

Regional Management Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Announced third quarter 2021 results with net income of $22.2 million and diluted earnings per share of $2.11.

Regional Management Corp. reported a strong third quarter with record revenue of $111.5 million, up 23% year-over-year, and net income of $22.2 million. The company's strategic initiatives and omni-channel model fueled growth, with the portfolio exceeding $1.3 billion at quarter-end.

  • Net income for the third quarter of 2021 was $22.2 million and diluted earnings per share was $2.11.
  • Net finance receivables as of September 30, 2021 hit another all-time high at $1.3 billion, a record increase of $254.7 million, or 24.0%, from the prior-year period.
  • Total core small and large loan net finance receivables increased $263.4 million, or 25.4%, compared to the prior-year period.
  • Total revenue for the third quarter of 2021 was a record $111.5 million, an increase of $20.9 million, or 23.1%, from the prior-year period.

Headline financials

Total Revenue

$111M

Previous: $90.5M+23.1%
EPS (adj)

$2.11

Previous: $1.01+108.9%
Operating expense ratio

15.4%

No prior period
Capital Expenditures

-$1.96M

Previous: -$3.56M+45.0%
Free Cash Flow

$20.3M

Previous: $7.67M+164.0%
Net Income

$22.2M

Previous: $11.2M+97.7%
Operating Income

$25.2M

Previous: $14.2M+78.0%
Gross Profit

$111M

Previous: $90.5M+23.1%
Cash & Equivalents

$8.15M

Previous: $4.29M+89.8%
Total Assets

$1.31B

Previous: $1.04B+26.6%
Stock-Based Comp

$1.84M

Previous: $1.39M+31.8%

Revenue & EPS history

Regional Management · Revenue · Quarterly

$111M

Q3 2021+23.1%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Regional Management · $12.1M total across 2 segments · Q3 2021

  • Insurance income, net
    $9.42M
  • Other income
    $2.69M

Forward guidance

The company is raising its full year 2021 outlook for net income to between $85 million and $87 million, from its previous outlook of net income between $75 million and $80 million.

Tailwinds

  • Current economic conditions remain steady
  • The full year 2021 net credit loss rate will be less than 7.0%
  • Net finance receivables will be approximately $1.4 billion at the end of 2021
  • The company will further build its allowance for credit losses in the fourth quarter due to net finance receivables growth
  • Assuming the economic recovery remains on track, the company believes that credit performance will remain strong into next year and that the company’s 2022 net credit loss rate will be at or below 8.5%

Headwinds

  • The allowance for credit losses rate will continue to normalize gradually toward pre-pandemic levels of approximately 10.8% by mid-2022
  • General and administrative expenses will increase in the fourth quarter as the company continues to invest in its growth initiatives

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 Q3 2021

Historical avgQ3 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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