Regional Management Corp. · NYSE:RM
Regional Management — Q4 2017 Earnings Presentation
12 slides from Regional Management's earnings presentation, Feb 13, 2018
Slide 1: 4Q 2017 Earnings Call Presentation
4Q 2017 Earnings Call Presentation February 13, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation, the related remarks, and the responses to various questions may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Regional Management Corp.’s expectations or beliefs concer
Slide 3: 4Q 17 Highlights – Continued Strong Portfolio Growth
4Q 17 Highlights – Continued Strong Portfolio Growth (dollars in millions) 4Q 17 4Q 16 Chg B/(W) % Chg B/(W) Total Finance Receivables $817.5 $717.8 $99.7 13.9% Core Finance Receivables 723.0 593.8 129.2 21.8% Total Revenue 72.1 64.0 8.1 12.6% Provision for Credit Losses 19.5 19.4 (0.0) (0.2%) G&A E
Slide 4: Strategic Focus in 2018
Strategic Focus in 2018 ï,§ Nortridge Loan System (NLS) Implementation — Successfully converted all states to NLS in early 2018 — Successfully built enhanced functionality (texting, imaging, and customer portal) — Continue to build out new capabilities to drive improved business performance ï,§ Cred
Slide 5: Net Income and Fully Diluted EPS
Net Income and Fully Diluted EPS (4) $12.0 Net Income $10.9 $10.0 (1) $7.6 $8.0 (2) $6.5 $6.5 $6.1 $5.9 (3) Millions $6.0 $5.2 $5.3 $4.0 $2.0 $0.0 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 GAAP Net Income $5.2 $5.9 $6.5 $6.5 $7.6 $6.1 $5.3 $10.9 Net Non- N/A N/A N/A N/A $1.5 ($0.3) ($1.5) $3.5
Slide 6: Continued Net Finance Receivables Growth
Continued Net Finance Receivables Growth $850 Ending Net Finance Receivables $817 $800 $775 $750 $718 $727 $696 $695 $700 $646 Millions $650 $607 $600 $550 $500 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 YoY Ä $81.5 $73.2 $94.5 $89.3 $87.6 $81.0 $78.7 $99.7 YoY Ä % 15.5% 12.8% 15.7% 14.2% 14.4%
Slide 7: Product Category Trends
Product Category Trends in millions Ending Net Receivables 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 Small Loans ( £ $2,500) $311 $320 $349 $358 $336 $349 $363 $376 Large Loans (> $2,500) $162 $195 $217 $235 $242 $268 $309 $347 Core Loan Products $473 $515 $566 $594 $578 $617 $672 $723 Automob
Slide 8: Revenue Driven by Strong Year-Over-Year Portfolio Growth
Revenue Driven by Strong Year-Over-Year Portfolio Growth $73.0 Revenue $72.1 $69.2 $68.0 $65.8 $65.3 $62.5 $64.0 $63.0 $56.7 $57.3 Millions $58.0 $53.0 $48.0 $43.0 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 Interest & Fee Income Insurance Income Other Income Total Revenue 1Q 16 2Q 16 3Q 16 4Q 1
Slide 9: Provision Flat; NCL Rate Down Year-Over-Year
Provision Flat; NCL Rate Down Year-Over-Year $24.0 Net Credit Losses & Provision for Credit Losses $24.0 $20.0 $20.0 Millions $16.0 $16.0 in Millions in Provision Losses $12.0 $12.0 Credit $19.4 $17.3 $17.6 $18.0 $8.0 $8.0 $15.0 $13.4 $13.5 $14.8 Net Total $4.0 $4.0 $0.0 $0.0 1Q 16 2Q 16 3Q 16 4Q 16
Slide 10: Seasonal Pattern of Delinquency
Seasonal Pattern of Delinquency 30+ Days Past Due Delinquency Trend $70.0 7.1% 7.4% 7.5% 8.0% 6.8% 6.8% 6.5% 6.5% 7.0% $60.0 6.2% $7.3 $6.9 $6.2 6.0% $50.0 $8.9 $27.5 $5.8 $5.5 5.0% Millions $4.9 $8.2 $6.6 $6.8 $22.7 $40.0 $7.2 $21.4 $25.1 $19.6 $11.3 in $5.4 $6.3 $5.2 $17.5 $7.0 $21.2 $9.7 4.0% Rec
Slide 11: G&A Expense Dollars and Ratios
G&A Expense Dollars and Ratios Total G&A Expenses $50.0 25.0% 19.3% 18.9% $40.0 18.1% 17.7% 17.9% 18.0% 20.0% 17.1% 16.3% $30.0 15.0% ANR of $31.6 % $29.8 $30.5 $31.5 $33.8 $34.0 $29.5 $28.8 $20.0 10.0% Annualized $10.0 5.0% $0.0 0.0% 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 Sequential Ä 4.4%
Slide 12: Caw
fe) = > Caw mm = EI CHANT