NYSE$RM

Regional Management Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported outstanding portfolio growth and profitability.

Regional Management Corp. reported a net income of $14.3 million and diluted earnings per share of $1.28 for the fourth quarter ended December 31, 2020. Net finance receivables increased by $76.7 million, or 7.2%, quarter-over-quarter. The company kept 30+ day delinquencies stable at 5.3% as of December 31, 2020.

  • Net income for the fourth quarter of 2020 was $14.3 million and diluted earnings per share was $1.28.
  • Net finance receivables as of December 31, 2020 were $1.1 billion, an increase of 7.2%, or $76.7 million, from September 30, 2020.
  • Originated $358.7 million of loans in the fourth quarter of 2020, comparable to the prior-year period and up nearly $50.7 million, or 16.4%, from the third quarter of 2020.
  • 30+ day contractual delinquencies as of December 31, 2020 totaled $60.5 million, or 5.3% of net finance receivables, compared to 7.0% in the prior-year period.

Headline financials

Total Revenue

$97.4M

Previous: $98M-0.6%
EPS (adj)

$1.28

Previous: $1.38-7.2%
Operating expense ratio

16.4%

No prior period
Capital Expenditures

$819K

Previous: $1.91M-57.1%
Free Cash Flow

$46.6M

Previous: $48.3M-3.4%
Net Income

$14.3M

Previous: $15.7M-8.6%
Operating Income

$18.7M

No prior period
Gross Profit

$82.5M

Previous: $61.7M+33.8%
Cash & Equivalents

$71.9M

Previous: $56.4M+27.4%
Total Assets

$1.1B

Previous: $1.16B-4.7%
Stock-Based Comp

$1.73M

Previous: $1.74M-0.3%

Revenue & EPS history

Regional Management · Revenue · Quarterly

$97.4M

Q4 2020-0.6%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
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

Regional Management Corp. is focused on expanding market share, maintaining credit quality, and extending competitive advantages through innovation, geographic expansion, and digital initiatives.

Tailwinds

  • Expanding market share
  • Maintaining credit quality
  • Extending competitive advantages
  • Investing in digital initiatives to improve the online prequalification experience
  • Enabling online closing and electronic funding of loans

Headwinds

  • Potential changes in economic conditions
  • Impact of COVID-19 on liquidity and credit risk
  • Risks associated with implementing and maintaining information technology systems
  • Changes in interest rates
  • Changes in laws, regulations, or regulatory policies

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 Q4 2020

Historical avgQ4 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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