NYSE$RM

Regional Management Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced results with net income of $2.4 million and diluted earnings per share of $0.25.

Regional Management Corp. reported a solid fourth quarter in 2022. Net income was $2.4 million, and diluted EPS was $0.25. The company grew its portfolio by $92 million to $1.7 billion. The company finished the quarter with a 30+ day delinquency rate of 7.1%.

  • Net income for the fourth quarter of 2022 was $2.4 million and diluted earnings per share was $0.25, inclusive of a $2.7 million impact to net income from the sale of $27.1 million of non-performing loans.
  • Net finance receivables as of December 31, 2022 were $1.70 billion, an increase of $273.1 million, or 19.2%, from the prior-year period.
  • Total revenue for the fourth quarter of 2022 was $132.0 million, an increase of $12.5 million, or 10.5%, from the prior-year period.
  • As of December 31, 2022, 30+ day contractual delinquencies totaled $119.8 million, or 7.1% of net finance receivables.

Headline financials

Total Revenue

$132M

Previous: $119M+10.5%
EPS (adj)

$0.25

Previous: $2.04-87.7%
Operating expense ratio

13.4%

No prior period
Capital Expenditures

$3.23M

Previous: $1.63M+98.4%
Free Cash Flow

$56.8M

Previous: $51.4M+10.7%
Net Income

$2.4M

Previous: $20.8M-88.4%
Operating Income

$1.23M

Previous: $25.3M-95.1%
Gross Profit

-$7.79M

Previous: $109M-107.2%
Cash & Equivalents

$3.87M

Previous: $149M-97.4%
Total Assets

$1.72B

Previous: $1.46B+18.2%
Stock-Based Comp

$2.63M

Previous: $2.13M+23.2%

Revenue & EPS history

Regional Management · Revenue · Quarterly

$132M

Q4 2022+10.5%vs Q4 2021
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

Looking ahead, the company believes that the actions they took in 2022 position them to address the challenging economic environment and will enable them to respond quickly when conditions improve. In 2023, they will continue their focus on highest confidence originations, emphasizing quality over quantity.

Tailwinds

  • Continue focus on highest confidence originations.
  • Emphasize quality over quantity.
  • A greater percentage of originations will be to present and former borrowers.
  • New borrower lending disproportionately skewed to newer states.
  • Tightly manage expenses.

Headwinds

  • Expect receivables growth to slow in 2023.
  • Challenging economic environment.
  • Monitor credit performance and the macroeconomic environment closely, making further adjustments to underwriting as necessary.
  • COVID-19 pandemic may impact Regional Management’s operations and financial condition.
  • Exposure to credit risk and repayment risk, which risks may increase in light of adverse or recessionary economic conditions

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 2022

Historical avgQ4 2022

+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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