Regional Management Corp. · NYSE:RM
Regional Management — Q1 2017 Earnings Presentation
11 slides from Regional Management's earnings presentation, May 2, 2017
Slide 1: 1Q 2017 Earnings Call Presentation
REGIONAL TM MANAGEMENT 1Q 2017 Earnings Call Presentation May 2, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement REGIONAL TM MANAGEMENT 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 st
Slide 3: 1Q17 Highlights - Strong Year-over-Year Portfolio Growth
1Q17 Highlights - Strong Year-over-Year Portfolio Growth REGIONAL TM MANAGEMENT (in millions, except EPS) 1Q17 1Q16 $ Chg B/(W) % Chg B/(W) Finance Receivables $695.0 $607.4 $87.6 14.4% Interest & Fee Income 59.3 51.3 8.0 15.5% Total Revenue 65.8 56.7 9.1 16.1% Provision for Credit Losses 19.1 13.8
Slide 4: Strategic Updates
Strategic Updates REGIONAL TM MANAGEMENT Nortridge Loan Management System Implementation - Conversion to NLS progressing - Successfully built enhanced functionality (texting, imaging, and customer portal) - Plan to resume state conversions in 2Q17 and to convert remaining states throughout 2017 Mark
Slide 5: Net Income Follows Seasonal Pattern of Ledger
Net Income Follows Seasonal Pattern of Ledger Growth REGIONAL TM MANAGEMENT Millions $750 $700 $650 $600 $550 $500 $450 Ending Net Receivables $573 $602 $628 $607 $646 $696 $718 $695 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 YoY $54.6 $58.3 $82.3 $81.5 $73.2 $94.5 $89.3 $87.6 C
Slide 6: Product Category Trends
Product Category Trends REGIONAL MANAGEMENT TM in millions % Chg I/(D) Ending Net Receivables 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 vs. 4Q16 vs. 1Q16 vs. 4Q16 vs. 1Q16 Small Loans $315 $328 $338 $311 $320 $349 $358 $336 ($23) $25 (6.4%) 8.1% Large Loans $93 $120 $147 $162 $195 $217 $235 $242 $7 $8
Slide 7: Revenue Driven by Strong Year-over-Year Growth
Revenue Driven by Strong Year-over-Year Portfolio Growth REGIONAL MANAGEMENT TM Total Revenue Millions $68.0 $63.0 $58.0 $53.0 $48.0 $43.0 $53.0 $55.1 $56.7 $56.7 $57.3 $62.5 $64.0 $65.8 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Sequential 0.9% 4.0% 2.9% 0.0% 1.1%9.0%2.5%2.8% Y
Slide 8: Interest & Fee Income Driven by Strong Portfolio Growth
Interest & Fee Income Driven by Strong Portfolio Growth REGIONAL TM MANAGEMENT Interest and Fee Income Millions $65.0 $60.0 $55.0 $50.0 $45.0 $40.0 $47.7 $49.7 $51.3 $51.3 $52.6 $57.4 $59.7 $59.3 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 Sequential 1.3% 4.3% 3.2% 0.0% 2.5% 9.2%
Slide 9: Stabilizing Credit – Provision Consistent with Portfolio
Stabilizing Credit – Provision Consistent with Portfolio Growth REGIONAL TM MANAGEMENT Net Credit Losses & Provision for Credit Losses Net Credit Losses in Millions $24.0 $20.0 $16.0 $12.0 $8.0 $4.0 $0.0 $24.0 $20.0 $16.0 $12.0 $8.0 $4.0 $0.0 Includes $2.0MM gain on bulk sale of charged-off loans In
Slide 10: Seasonal Pattern of Delinquency
Seasonal Pattern of Delinquency REGIONAL TM MANAGEMENT 1Q 2017 Delinquency: - Slow file, 1+ days past due is at historic low of 15.7% - 30+ days past due decreases sequentially to 6.5% Last three delinquency buckets remain somewhat elevated as a cohort with higher losses rolls through 30+ Delinquenc
Slide 11: Continuing to Manage Expenses Closely
Continuing to Manage Expenses Closely REGIONAL TM MANAGEMENT Millions $50.0 Total G&A Expenses 25.0% 20.5% $40.0 17.8% 18.6% 19.3% 18.9% 18.1% 20.0% 17.7% 16.3% $30.0 15.0% $28.2 $29.8 $29.5 $30.5 $31.5 $26.2 $28.6 $28.8 $20.0 10.0% $10.0 5.0% $0.0 0.0% 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 201