Regional Management Corp. · NYSE:RM
Regional Management — Q1 2018 Earnings Presentation
12 slides from Regional Management's earnings presentation, May 1, 2018
Slide 1: 1Q 2018 Earnings Call Presentation
1Q 2018 Earnings Call Presentation May 1, 2018
Slide 2: Safe Harbor Statement
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 concer
Slide 3: 1Q 18 Highlights – Continued Double-Digit Portfolio Growth
1Q 18 Highlights – Continued Double‐Digit Portfolio Growth (dollars in millions) 1Q 18 1Q 17 Chg B/(W) % Chg B/(W) Total Finance Receivables $805.0 $695.0 $110.0 15.8% Core Finance Receivables 724.4 577.9 146.5 25.3% Total Revenue 72.6 65.8 6.8 10.3% Provision for Credit Losses 19.5 19.1 (0.4) (2.0%
Slide 4: Strategic Initiatives Update
Strategic Initiatives Update Nortridge Loan System (NLS) Implementation ─ NLS is performing very well ─ Enhanced functionality (automated underwriting, electronic payments, texting, imaging, and customer portal) is now rolled out to our entire branch network ─ Continue to build out new capabilitie
Slide 5: Net Income and Diluted EPS
Net Income and Diluted EPS $12.0 Net Income (4) $10.9 ‖ (1) 1Q 17 included $1.5 million $10.0 tax benefit from exercise of $8.6 (1) stock options $7.6 $8.0 $6.5 $6.5 (2) (2) 2Q 17 included $0.3 million $6.1 ‖ Millions $5.9 (3) $6.0 $5.2 $5.3 after‐tax executive transition costs $4.0 ‖ (3) 3Q 17 was
Slide 6: Consecutive Quarters of Double-Digit Growth
12 Consecutive Quarters of Double‐Digit Growth $850 Ending Finance Receivables $817 $805 $800 $775 $750 $718 $727 $696 $695 $700 Millions $646 $650 $607 $600 $550 $500 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 YoY Δ $81.5 $73.2 $94.5 $89.3 $87.6 $81.0 $78.7 $99.7 $110.0 YoY Δ % 15.5% 12.
Slide 7: Product Category Trends
Product Category Trends in millions vs. 4Q 17 vs. 1Q 17 Finance Receivables 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 $ Chg I/(D) % Chg I/(D) $ Chg I/(D) % Chg I/(D) Small Loans (≤ $2,500) $311 $320 $349 $358 $336 $349 $363 $376 $360 ($15) (4.1%) $25 7.4% Large Loans (> $2,500) $162 $195
Slide 8: Revenue Driven by Strong Year-Over-Year Portfolio Growth
Revenue Driven by Strong Year‐Over‐Year Portfolio Growth $75.0 Revenue $72.1 $72.6 $69.2 • Seasonal 1Q yield $70.0 $65.8 $65.3 decrease from higher $64.0 $65.0 $62.5 yielding loans paying off from tax refunds Millions $60.0 $56.7 $57.3 $55.0 • Yields negatively $50.0 impacted 10 basis $45.0 points b
Slide 9: Seasonal Pattern of Delinquency
Seasonal Pattern of Delinquency $70.0 30+ Delinquency Trend Delinquency in Millions $60.0 $7.3 $50.0 $6.9 $6.2 $8.9 $27.5 $8.8 $5.8 $5.5 $6.8 $4.9 $8.2 $25.1 $6.6 $22.7 $40.0 $7.2 $21.4 $6.3 $11.3 $7.9 $26.4 $5.4 $19.6 $5.2 $17.5 $7.0 $21.2 $9.7 $8.4 $10.0 $7.8 $9.7 $30.0 $5.9 $18.3 $7.2 $7.6 $15.3
Slide 10: Provision Flat; NCL Rate Down Year-Over-Year
Provision Flat; NCL Rate Down Year‐Over‐Year Net Credit Loss Rates (1) 12.0% 10.9% 12.0% • NCL rate in 1Q 18 Net Credit Losses (% of AFR) 9.8% 9.9% 10.2% 9.7% 10.0% 9.0% 10.0% decreased 70 basis points 8.6% 8.0% 7.8% compared to 1Q 17 8.0% 8.0% 6.0% Included 6.0% • 1Q 18 NCL rate includes 40 Include
Slide 11: G&A Expense Dollars and Ratios
G&A Expense Dollars and Ratios $50.0 Total G&A Expenses 25.0% 19.3% 18.9% $40.0 18.1% 17.7% 17.9% 18.0% 20.0% 17.1% 17.0% 16.3% Annualized % of AFR $33.8 $34.0 $34.6 $30.0 15.0% Millions $30.5 $31.5 $31.6 $29.8 $29.5 $28.8 $20.0 10.0% $10.0 5.0% $0.0 0.0% 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q
Slide 12: Regional Management
REGIONAL MANAGEMENT @ REGIONAL MANAGEMENT Le