Regional Management Corp. · NYSE:RM
Regional Management — Q2 2018 Earnings Presentation
12 slides from Regional Management's earnings presentation, Jul 31, 2018
Slide 1: 2Q 2018 Earnings Call Presentation
2Q 2018 Earnings Call Presentation July 31, 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: 2Q 18 Highlights – Continued Double-Digit Portfolio Growth
2Q 18 Highlights – Continued Double‐Digit Portfolio Growth (dollars in millions) 2Q 18 2Q 17 Chg B/(W) % Chg B/(W) Total Finance Receivables $847.2 $726.8 $120.5 16.6% Core Finance Receivables 776.8 616.7 160.1 26.0% Total Revenue 72.4 65.3 7.1 10.8% Provision for Credit Losses 20.2 18.6 (1.6) (8.7%
Slide 4: Strategic Initiatives Update
Strategic Initiatives Update Nortridge Loan System (NLS) Implementation ─ NLS is performing very well ─ Enhanced functionality (automated underwriting, electronic payments, texting, imaging, and customer portal) has been rolled out to our entire branch network for several months ─ Continue to buil
Slide 5: Net Income and Diluted EPS
Net Income and Diluted EPS (4) $12.0 Net Income $10.9 ‖ (1) 1Q 17 included $1.5 million $10.0 tax benefit from exercise of (1) $8.6 $8.5 $7.6 stock options $8.0 (2) $6.5 $6.5 $6.1 Millions $5.9 (3) (2) 2Q 17 included $0.3 million $6.0 $5.2 $5.3 ‖ after‐tax executive transition $4.0 costs $2.0 ‖ (3)
Slide 6: Consecutive Quarters of Double-Digit Growth
13 Consecutive Quarters of Double‐Digit Growth $900 Ending Finance Receivables $847 $850 $817 $805 $800 $775 $750 $718 $727 Millions $696 $695 $700 $646 $650 $607 $600 $550 $500 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 YoY Δ $81.5 $73.2 $94.5 $89.3 $87.6 $81.0 $78.7 $99.7 $110.0 $
Slide 7: Product Category Trends
Product Category Trends in millions vs. 1Q 18 vs. 2Q 17 Ending Finance Receivables 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 $ Chg I/(D) % Chg I/(D) $ Chg I/(D) % Chg I/(D) Small Loans (≤ $2,500) $311 $320 $349 $358 $336 $349 $363 $376 $360 $385 $24 6.7% $36 10.3% Large Loans (> $2
Slide 8: Revenue Driven by Strong Year-Over-Year Portfolio Growth
Revenue Driven by Strong Year‐Over‐Year Portfolio Growth $75.0 Revenue $72.1 $72.6 $72.4 $69.2 $70.0 $65.8 $65.3 $65.0 $64.0 • 2Q 18 interest and fee $62.5 yield improved 20 basis Millions $60.0 $57.3 points sequentially $56.7 $55.0 $50.0 $45.0 $40.0 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1
Slide 9: Provision Flat; NCL Rate Down Year-Over-Year
Provision Flat; NCL Rate Down Year‐Over‐Year Net Credit Loss Rates 12.0% 10.9% 12.0% • NCL rate in 2Q 18 9.7% 9.8% 9.9% 10.2% 9.5% decreased 40 basis points 10.0% 9.0% 11.0% compared to 2Q 17 Net Credit Losses (% of AFR) 8.6% 8.0% 7.8% 8.0% 10.0% • 2Q 18 NCL rate includes 6.0% 9.0% 50 basis points o
Slide 10: Seasonal Pattern of Delinquency
Seasonal Pattern of Delinquency $70.0 30+ Delinquency Trend $60.0 $7.3 $50.0 $6.9 $6.2 $8.9 $6.7 Delinquency in Millions $27.5 $8.8 $5.8 $5.5 $6.8 $4.9 $8.2 $6.6 $6.9 $22.0 $40.0 $7.2 $25.1 $22.7 $11.3 $7.9 $21.4 $6.3 $26.4 $5.2 $5.4 $17.5 $19.6 $9.7 $8.4 $10.0 $7.0 $21.2 $8.4 $7.8 $9.7 $30.0 $5.9 $
Slide 11: G&A Expense Dollars and Ratios
G&A Expense Dollars and Ratios Total G&A Expense $50.0 25.0% 19.3% 18.9% $40.0 18.1% 17.7% 17.9% 18.0% 20.0% 17.1% 17.0% Annualized % of AFR 16.3% 16.2% $33.8 $34.0 $34.6 $30.0 $33.2 15.0% $31.5 $31.6 Millions $29.8 $29.5 $30.5 $28.8 $20.0 10.0% $10.0 5.0% $0.0 0.0% 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q
Slide 12: Regional Management
REGIONAL MANAGEMENT @ REGIONAL MANAGEMENT Le