Regional Management Corp. · NYSE:RM
Regional Management — Q2 2019 Earnings Presentation
16 slides from Regional Management's earnings presentation, Jul 31, 2019
Slide 1: 2Q 2019 Earnings Call Supplemental Presentation
2Q 2019 Earnings Call Supplemental Presentation July 31, 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: 2Q 19 Highlights
2Q 19 Highlights dollars in millions (except per share amounts) 2Q 19 2Q 18 $ Chg B/(W) % Chg B/(W) Average Finance Receivables $934.4 $818.0 $116.4 14.2% Interest & Fee Income 76.0 66.8 9.1 13.7% Total Revenue 84.3 72.4 11.9 16.4% Provision for Credit Losses 25.7 20.2 (5.5) (27.3%) G&A Expense 37.7
Slide 4: Consecutive Quarters of Year-Over-Year Double-Digit Portfolio Growth
17 Consecutive Quarters of Year‐Over‐Year Double‐Digit Portfolio Growth Ending Finance Receivables vs. 1Q 19 vs. 2Q 18 in millions 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 $ Chg I/(D) % Chg I/(D) $ Chg I/(D) % Chg I/(D) Small Loans (≤ $2,500) $336 $349 $363 $376 $360 $385 $414 $43
Slide 5: Consecutive Quarters of Year-Over-Year Double-Digit Revenue Growth
12 Consecutive Quarters of Year‐Over‐Year Double‐Digit Revenue Growth Revenue $90.0 $85.0 $83.7 $84.3 • Total revenue increased 16.4% vs. $81.7 $80.0 $77.9 prior‐year period $75.0 $72.1 $72.6 $72.4 $69.2 • Interest and fee yield decreased 20 Millions $70.0 $65.8 $65.3 basis points vs. the prior‐year
Slide 6: Year-Over-Year Credit Trends
Year‐Over‐Year Credit Trends • Annualized net credit loss rate increased 1.2% vs. prior‐year period. The increase includes 0.6% of additional non‐file insurance claims (bankruptcy losses) that shifted to net credit losses following the business policy change implemented in 4Q 18. 14.0% Net Credit Lo
Slide 7: Allowance for Credit Losses
Year‐Over‐Year Credit Trends $70.0 $30.0 35.0% Allowance as % of Ending Finance Receivables 14.0% Provision for Credit Losses 30.3% 30.5% $60.0 29.1% 28.5% 29.1% 28.6% 27.9% 28.3% 30.0% $25.0 $25.7 $58.3 12.0% 27.0% 26.9% $56.4 $57.2 Allowance for Credit Losses (in millions) Provision for Credit Los
Slide 8: Seasonal Pattern of Delinquency
Seasonal Pattern of Delinquency • 2Q 19 delinquency is up slightly from the prior year o 30+ days past due of 6.4% is 10 bps higher than prior year o 90+ days past due of 2.7% is 10 bps higher than prior year o Sequentially, 30+ days past due improved 60 bps; 90+ days past due improved 80 bps compar
Slide 9: Achieving Operating Leverage While Investing in Our Business
Achieving Operating Leverage While Investing in Our Business Operating Expense Ratio $50.0 60.0% 50.0% $40.0 $38.2 $37.7 $35.9 $36.6 40.0% $33.8 $34.0 $34.6 $30.0 $33.2 % of AFR $31.5 $31.6 Millions 30.0% $20.0 17.7% 17.9% 18.0% 17.1% 17.0% 20.0% 16.2% 16.5% 16.1% 16.5% 16.2% $10.0 10.0% $0.0 0.0% 1
Slide 10: Interest Expense
Interest Expense $12.0 12.0% $10.0 $9.6 $9.7 $9.8 10.0% $8.7 $7.9 $8.0 8.0% $7.2 $6.7 $6.8 % of AFR Millions $6.0 6.0% $5.2 $5.2 4.2% 4.2% 4.2% 3.9% 4.0% $4.0 3.5% 3.4% 3.5% 4.0% 2.9% 3.0% $2.0 2.0% $0.0 0.0% 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 Interest Expense Interest Expen
Slide 11: Strong Funding Profile
Strong Funding Profile Debt Capacity • As of June 30, 2019, total $500 undrawn capacity was $368 $400 $94 million (subject to borrowing $95 $120 $43 $74 base) $300 Millions $101 $69 $59 $34 • Increased fixed rate debt from $200 $287 $312 $339 $294 31% to 42% over the last $257 $100 $155 $193 $179 $1
Slide 12: Appendix
CREGIONAL MANAGEMENT Appendix
Slide 13: Consolidated Income Statements
Consolidated Income Statements in thousands 2Q 19 2Q 18 YTD 18 YTD 17 YTD 16 YTD 15 Revenue Interest and fee income $75,974 $66,829 $280,121 $249,034 $220,963 $195,794 Insurance income, net 5,066 2,882 14,793 13,061 9,456 11,654 Other income 3,234 2,705 11,792 10,364 10,099 9,858 Total revenue 84,27
Slide 14: Consolidated Balance Sheets
Consolidated Balance Sheets in thousands 2Q 19 2Q 18 2018 2017 2016 2015 Cash $694 $2,799 $3,657 $5,230 $4,446 $7,654 Gross finance receivables 1,300,043 1,121,711 1,237,526 1,066,650 916,954 785,042 Unearned finance charges and insurance premiums (326,609) (274,473) (305,283) (249,187) (199,179) (1
Slide 15: Balance Sheet Metrics
Balance Sheet Metrics in thousands 2Q 19 2Q 18 2018 2017 2016 2015 Total assets $1,019,316 $868,220 $956,395 $829,483 $712,224 $626,373 Less: Intangible assets 9,953 10,785 10,010 10,607 6,448 3,023 Tangible assets 1,009,363 857,435 946,385 818,876 705,776 623,350 Net long‐term debt 681,953 588,328
Slide 16: CREGIONAL
CREGIONAL MANAGEMENT @ REGIONAL i MANAGEMENT L™*