Regional Management Corp. · NYSE:RM
Regional Management — Investor Presentation (June 2017)
17 slides from Regional Management's investor presentation, Jun 20, 2017
Slide 1: Investor Presentation June 2017
REGIONAL TM MANAGEMENT Investor Presentation June 2017
Slide 2: Safe Harbor Statement
REGIONAL TM MANAGEMENT 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 expecta
Slide 3: Investment Highlights
REGIONAL TM MANAGEMENT Investment Highlights Attractive Long-Term Market Opportunity Numerous Avenues for Potential Growth REGIONAL TM MANAGEMENT Deep Management Experience Multi-Channel Origination Platform Diverse Product Offering (with graduation from small to large loans) 3
Slide 4: Company Overview
REGIONAL TM MANAGEMENT Company Overview 30-year old consumer finance company focused on installment lending based primarily in the Southeast and South Central U.S. Branch-based with 344 storefronts in 9 states as of March 31, 2017 Products include small and large personal loans, auto loans, and reta
Slide 5: Significant Market Opportunity
REGIONAL TM MANAGEMENT Significant Market Opportunity Regional’s 350,000 customer accounts represent 0.3% of the approximately 115 million Americans that generally align with the Company’s customer base. Regional believes that most of this population is underserved and provides an attractive market
Slide 6: Significant Market Opportunity
REGIONAL TM MANAGEMENT Significant Market Opportunity Competition Numerous smaller competitors Consolidation in consumer finance industry Online lending Regional branch footprint in only nine states represents strong expansion opportunities Well-positioned and compliant within evolving regulatory la
Slide 7: Branch Network - Growing Organically
REGIONAL TM MANAGEMENT Branch Network - Growing Organically Branch Overview Approximately 350,000 individual borrower accounts through network of 344 branches as of March 31, 2017 Branch personnel establish and develop customer relationships throughout life of loan - Today, most loan proceeds distri
Slide 8: Multi-Product Offering Fits Customer Needs
REGIONAL TM MANAGEMENT Multi-Product Offering Fits Customer Needs Product suite provides multiple solutions for customers as their credit needs change Diversification provides competitive advantage versus monoline lenders Small Large Automobile Retail Customer Need Short-term cash needs Vacation exp
Slide 9: High Customer Satisfaction
REGIONAL TM MANAGEMENT High Customer Satisfaction Regional’s “Net Promoter Score” (NPS) of 66%, which measures customer loyalty, compares favorably to other companies in the financial services industry and in other industries. Top-three box (8, 9, or 10 out of 10) customer satisfaction of 88% Over 7
Slide 10: Multi-Channel Origination Platform Provides Broad Reach
REGIONAL TM MANAGEMENT Multi-Channel Origination Platform Provides Broad Reach Branches are foundation of Regional’s multi-channel strategy Primary point of customer contact Mail campaigns attract ~100,000 new customers per year to Regional Dealerships and retailers serve as “virtual” branches Websi
Slide 11: Historical Financial Performance
Historical Financial Performance REGIONAL TM MANAGEMENT Receivables and revenue have grown in parallel and over time should create opportunity for improved net income margins Net Income ($ in millions) $30 $25 $20 $15 $10 $5 $0 $3.1 $6.5 $9.9 $16.4 $21.2 $25.4 $28.8 $14.8 $23.4 $24.0 2007 2008 2009
Slide 12: Recent Quarterly Historical Performance
Recent Quarterly Historical Performance REGIONAL TM MANAGEMENT Net Income ($ in millions) $10 $8 $6 $4 $2 $0 $5.6 $4.4 $1.4 $3.4 $4.1 $5.4 $6.5 $7.4 (1) $5.2 $5.9 $6.5 $6.5 $7.6 (2) 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 Net Credit Losses & 30+ Delinquency Rate
Slide 13: Strategic Initiative – Implementation of NLS
REGIONAL TM MANAGEMENT Strategic Initiative – Implementation of NLS Implementing NLS loan origination and servicing platform Resumed state conversions in 2Q 2017 Network-wide conversion expected by end of year System features and improvements Significant movement toward paperless environment Documen
Slide 14: Strategic Initiative – Digital Channel
REGIONAL TM MANAGEMENT Strategic Initiative – Digital Channel Enhancing digital channel as part of multi-channel platform - Texting capabilities assist with payment reminders and late payment notices, and will be used for future marketing messages - Customer portal to handle their information needs
Slide 15: Funding Update
REGIONAL TM MANAGEMENT Funding Update Amended and Upsized the Senior Revolver - Increased the committed line to $638 million from its previous amount of $585 million - The upper limit of the accordion feature has also been increased to $700 million from its previous amount of $650 million - Other bo
Slide 16: Investment Highlights
REGIONAL TM MANAGEMENT Investment Highlights Attractive Long-Term Market Opportunity Numerous Avenues for Potential Growth REGIONAL TM MANAGEMENT Deep Management Experience Multi-Channel Origination Platform Diverse Product Offering (with graduation from small to large loans) 16
Slide 17: Management
REGIONAL TM MANAGEMENT REGIONAL TM MANAGEMENT RM LISTED NYSE
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