Regional Management Corp. · NYSE:RM
Regional Management — Q1 2019 Earnings Presentation
12 slides from Regional Management's earnings presentation, May 8, 2019
Slide 1: 1Q 2019 Earnings Call Supplemental Presentation
1Q 2019 Earnings Call Supplemental Presentation May 8, 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement This document contains summarized information concerning Regional Management Corp. (the “Company”) and the Company’s business, operations, financial performance, and trends. No representation is made that the information in this document is complete. For additional financial, s
Slide 3: 1Q 19 Highlights
1Q 19 Highlights dollars in millions (except per share amounts) 1Q 19 1Q 18 Chg B/(W) % Chg B/(W) Average Finance Receivables $924.9 $814.5 $110.5 13.6% Interest & Fee Income 74.3 66.2 8.2 12.4% Total Revenue Yield 35.4% 35.7% (0.3%) (0.8%) Total Revenue 81.7 72.6 9.1 12.6% Provision for Credit Loss
Slide 4: Consecutive Quarters of Year-Over-Year Double-Digit Portfolio Growth
16 Consecutive Quarters of Year-Over-Year Double-Digit Portfolio Growth in millions vs. 4Q 18 vs. 1Q 18 Finance Receivables 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 $ Chg I/(D) % Chg I/(D) $ Chg I/(D) % Chg I/(D) Small Loans (≤ $2,500) $358 $336 $349 $363 $376 $360 $385 $414 $438
Slide 5: Consecutive Quarters of Double-Digit Revenue Growth
11 Consecutive Quarters of Double-Digit Revenue Growth $90.0 Revenue $83.7 $85.0 $81.7 $77.9 • Interest & fee income increased 12.4% and $80.0 total revenue increased 12.6% vs. prior-year $75.0 $72.6 $72.1 $72.4 period Millions $69.2 $70.0 $65.8 $65.3 $64.0 $65.0 • Seasonal 1Q yield decrease from hi
Slide 6: Year-Over-Year Credit Trends
Year-Over-Year Credit Trends • Annualized net credit loss rate increased 0.7% vs. prior-year period. The increase includes 0.4% of additional non-file claims (bankruptcy losses) shifted to net credit losses from the business policy change implemented in 4Q 18. Net Credit Loss Rates 14.0% 14.0% 12.0%
Slide 7: Year-Over-Year Credit Trends
Year-Over-Year Credit Trends $70.0 Allowance as % of Finance Receivables Provision for Credit Losses 14.0% $30.0 35.0% $60.0 $58.3 12.0% 30.3% 30.3% $56.4 29.1% 28.5% 29.1% 28.6% 30.0% $55.3 $25.0 27.9% 28.3% $50.0 27.0% 26.9% 10.0% $23.6 $23.7 Allowance for Credit Losses $48.9 $48.5 $23.3 $47.4 $47
Slide 8: Seasonal Pattern of Delinquency
Seasonal Pattern of Delinquency • Custom credit scorecards have underwritten roughly 25% of the branch small and large loan portfolios and should improve DQ over time • 30+ days past due of 7.0% is 0.5% higher than prior year and includes 0.4% and 0.3% related to hurricane-affected branches as of Ma
Slide 9: Achieving Operating Leverage While Investing in our Business
G&A Expense Ratio Improved 50 Basis Points Achieving Operating Leverage While Investing in our Business $40.0 40.0% $38.2 $35.9 $36.6 $33.8 $34.0 $34.6 $30.0 $33.2 30.0% $31.5 $31.6 Annualized % of AFR $28.8 Millions $20.0 17.7% 17.9% 18.0% 17.1% 17.0% 20.0% 16.3% 16.2% 16.5% 16.1% 16.5% $10.0 10.0%
Slide 10: Interest Expense
Interest Expense $12.0 12.0% $10.0 $9.6 $9.7 10.0% $8.7 $7.9 $8.0 8.0% $7.2 $6.7 $6.8 % of AFR Millions $6.0 6.0% $5.3 $5.2 $5.2 4.2% 4.3% 3.9% 4.0% $4.0 3.5% 3.4% 3.5% 4.0% 3.0% 2.9% 2.9% $2.0 2.0% $0.0 0.0% 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 Interest expense Interest expen
Slide 11: Strong Funding Profile
Strong Funding Profile Debt Capacity $500 $450 $400 $94 • As of March 31, 2019, total $350 $95 $120 $43 undrawn capacity was $433M $300 (subject to borrowing base) Millions $250 $101 $34 $69 $59 $200 $339 • Increased fixed rate debt from $150 $287 $312 $100 $224 $257 8% to 47% over the last twelve $
Slide 12: CREGIONAL MANAGEMENT
CREGIONAL MANAGEMENT @ REGIONAL MANAGEMENT L™*