Regional Management Corp. · NYSE:RM
Regional Management — Q3 2016 Earnings Presentation
15 slides from Regional Management's earnings presentation, Oct 27, 2016
Slide 1: 3Q 2016 Earnings Call Presentation
3Q 2016 Earnings Call Presentation October 27, 2016 Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and the responses to various questions contain forward-looking statements, which reflect our current views with respect to, among other things, the Company’s operations and financial performance. You can identify these forward-looking statements by the use of
Slide 3: 3Q16 Highlights – Strong Portfolio Growth
3Q16 Highlights – Strong Portfolio Growth Non-GAAP earnings exclude $0.4 million of non-operating system implementation costs. For a reconciliation of non-GAAP financial measures to the comparable GAAP financial measure, please refer to the Appendix of this presentation.
Slide 4: Net Income Follows Seasonal Pattern of Portfolio Growth
GAAP NI YoY % (60%) (27%) 23% 366% 118% 27% 9% 0% EPS $0.26 $0.31 $0.41 $0.50 $0.56 $0.40 $0.49 $0.56 Non-GAAP NI YoY % (54%) 17% 13% 265% 43% (6%) 17% 3% EPS(1) $0.33 $0.44 $0.41 $0.50 $0.47 $0.42 $0.53 $0.58 Net Income Follows Seasonal Pattern of Portfolio Growth Continuing normal pattern of seaso
Slide 5: Revenue Rises on Strong Portfolio Growth
Revenue Rises on Strong Portfolio Growth Revenue y/y growth accelerated Revenue yield improving but tempered by higher insurance claims Average net receivables up in 3Q; 3Q & 4Q show largest increases from seasonal growth Sequential r (0.4%) (0.9%) (1.1%) (0.5%) (0.2%) (0.0%) 0.3% Year / Year r 1.7%
Slide 6: Product Category Trends
in millions Product Category Trends Small loans (including convenience check loans) have grown in dollars but have become a smaller percentage of the total portfolio (from 55% in 1Q15 to 50% in 3Q16) Large loans now represent 31% of the total portfolio
Slide 7: Seasonal Pattern of Delinquency
Seasonal Pattern of Delinquency 1+ days past due % 19.2% 20.6% 22.4% 20.3% 16.7% 18.3% 18.2% 30+ days past due % 6.3% 6.4% 7.3% 7.2% 6.2% 6.8% 7.1% 3Q 2016 Delinquency: 1+ days past due remains low at 18.2% 30+ days past due shows seasonal increase to 7.1% Current delinquency profile indicative of n
Slide 8: Net Charge-Offs Improve; Credit Quality Stable
Net Charge-Offs Improve; Credit Quality Stable Sequential r (29.2%) (2.9%) (3.2%) 10.5% 8.9% (10.6%) 0.7% Year / Year r 4.4% (3.6%) (9.8%) (26.5%) 13.1% 4.2% 8.3% Sequential r (4.0%) (0.5%) (0.9%) 0.5% 0.7% (1.1%) (0.6%) Year / Year r 0.2% (1.1%) (1.8%) (4.9%) (0.2%) (0.8%) (0.5%) Excludes the Impac
Slide 9: Continuing to Manage Expenses Closely
Continuing to Manage Expenses Closely Sequential r 14.9% (13.4%) (7.3%) 9.0% 4.4% (0.9%) 3.1% Year / Year r 64.0% 21.7% 3.6% 0.5% (8.6%) 4.6% 16.3% As % of ANR (1) 24.4% 20.5% 17.8% 18.6% 19.3% 18.9% 18.1% 3Q16 includes $2.2 million more in incentive expense than 3Q15 as the 2015 short-term and long
Slide 10: Normalized Return Ratios Trends - Fluctuate with Seasonal Results
Normalized Return Ratios Trends - Fluctuate with Seasonal Results
Slide 11: Estimated Loan System Implementation Costs
Estimated Loan System Implementation Costs in millions Actual 1Q16 Actual 2Q16 Actual 3Q16 Estimated 4Q16 Loan system conversion costs $0.4 $0.6 $0.4 $0.5 After-tax impact $0.2 $0.4 $0.3 $0.3
Slide 12: Strategic Updates
Strategic Updates Nortridge loan management system implementation Conversion to NLS is going well 62 branches on NLS now; 8 Virginia, 18 New Mexico, and 36 North Carolina Plan to rollout balance of states in latter part of 2016 and 1H 2017 Marketing Utilize test-and-learn approach Tested improved ta
Slide 13: Appendix
Appendix
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation in millions in millions The Company believes that non-GAAP measures are useful to investors as supplemental financial measures that, when viewed with the Company’s GAAP financial information, provide information regarding trends in the Company’s results of operations, which i
Slide 15: Regional Management Corp.
Regional Management Corp. ib