Regional Management Corp. · NYSE:RM
Regional Management — Investor Presentation (November 2017)
16 slides from Regional Management's investor presentation, Nov 13, 2017
Slide 1: Investor Presentation November 2017
Investor Presentation November 2017
Slide 2: Safe Harbor Statement
2 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 conc
Slide 3: Investment Highlights
3 Investment Highlights Attractive Long-Term Market Opportunity Diverse Product Offering (with graduation from small to large loans) Multi- Channel Origination Platform Deep Management Experience Numerous Avenues for Potential Growth
Slide 4: Company Overview
4 Company Overview ï,§ 30-year old consumer finance company focused on installment lending based primarily in the Southeast and South Central U.S. ï,§ Branch-based with 344 storefronts in 9 states as of September 30, 2017 ï,§ Products include small and large personal loans and retail loans—Large loa
Slide 5: Significant Market Opportunity
5 Significant Market Opportunity ï,§ Regional’s 360,000 customer accounts represent 0.3% of the approximately 115 million Americans that generally align with the Company’s customer base. ï,§ Regional believes that most of this population is underserved and provides an attractive market opportunity.
Slide 6: Significant Market Opportunity
6 Significant Market Opportunity ï,§ Numerous smaller competitors ï,§ Consolidation in consumer finance industry ï,§ Online lending ï,§ Regional branch footprint in only nine states represents strong expansion opportunities ï,§ Well-positioned and compliant within evolving regulatory landscape ï,§ C
Slide 7: Branch Network – Growing Organically
7 Branch Network – Growing Organically 112 117 134 170 221 264 300 331 339 344 347 344 0 50 100 150 200 250 300 350 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q 17 2Q 17 3Q 17 Branches 18 98 28 21 48 8 70 36 Branch Maturity Branches <1 year 11 1-3 years 45 3-5 years 87 >5 years 201 $694 $1,817 $2
Slide 8: Multi-Product Offering Fits Customer Needs
8 Multi-Product Offering Fits Customer Needs Size (a) Term (b) Security Net Receivables (c) # of Loans (b) Average APR (d) Range: $500 to $2,500 Average: $1,651 Up to 36 months Non-essential household goods $363.3 million ~260,000 48% Range: $2,501 to $20,000 Average: $4,937 18 to 60 months Title to
Slide 9: High Customer Satisfaction
9 ï,§ 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. ï,§ Top-three box (8, 9, or 10 out of 10) customer satisfaction of 88% ï,§ Over 75% of customers say they will apply
Slide 10: Multi-Channel Origination Platform Provides Broad Reach
10 Multi-Channel Origination Platform Provides Broad Reach ï,§ Branches are foundation of Regional’s multi-channel strategy—Primary point of customer contact ï,§ Mail campaigns attract ~100,000 new customers per year to Regional ï,§ Retailers serve as “virtual” branches ï,§ Website connects customer
Slide 11: Historical Financial Performance
11 Historical Financial Performance ï,§ Receivables and revenue have grown in parallel and over time should create opportunity for improved net income margins $57 $67 $73 $87 $105 $136 $171 $205 $217 $241 $0 $50 $100 $150 $200 $250 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $3.1 $6.5 $9.9 $16
Slide 12: Recent Quarterly Historical Performance
$4.1 $5.4 $6.5 $7.4 $5.2 $5.9 $6.5 $6.5 $7.6 $6.1 $5.3 $0 $2 $4 $6 $8 $10 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 (4) 12 Recent Quarterly Historical Performance $54 $54 $53 $53 $55 $57 $57 $57 $62 $64 $66 $65 $69 $0 $15 $30 $45 $60 $75 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q
Slide 13: Business Updates
ï,§ Nortridge Loan System (NLS) Implementation — Conversion to NLS progressing — Successfully built enhanced functionality (texting, imaging, and customer portal) — Successfully converted Texas in October; 80% of all accounts on new system — On schedule to complete conversion of all states by end of
Slide 14: Diverse Funding and Liquidity Profile
14 Diverse Funding and Liquidity Profile ï,§ Amended and Upsized the Senior Revolver—Committed line of $638 million – $459 million outstanding at September 30, 2017—Accordion feature of $700 million—The senior revolving credit facility allows for a warehouse facility and for subsequent securitizatio
Slide 15: Investment Highlights
15 Investment Highlights Attractive Long-Term Market Opportunity Diverse Product Offering (with graduation from small to large loans) Multi- Channel Origination Platform Deep Management Experience Numerous Avenues for Potential Growth
Slide 16: RM Listed NYSE
RM Listed NYSE
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