Regional Management Corp. (NYSE: RM), a diversified specialty consumer finance company, today announced results for the first quarter ended March 31, 2012.
First Quarter 2012 Highlights and Subsequent Events
- Commenced trading on the New York Stock Exchange on March 28 under the ticker symbol RM.
- Total first quarter 2012 revenue was $31.5 million, a 27.7% increase from the prior-year period.
- GAAP net income for the first quarter of 2012 was $5.1 million, a 3.8% increase from the prior-year period, and diluted earnings per share was $0.53 based on a diluted share count of 9.6 million. On a pro-forma basis, excluding one-time initial public offering expenses and applying proceeds from the IPO to reduce outstanding debt, net income for the first quarter of 2012 was $6.8 million, a 37.1% increase from the prior-year period, and diluted earnings per share was $0.53 based on a diluted share count of 12.7 million.
- Finance receivables as of March 31, 2012 were $317.5 million, an increase of 33.3% from the prior-year period. Net charge-offs as a percentage of average finance receivables for the first quarter of 2012 were 6.4%, consistent with the prior-year period.
- Same-store revenue growth 1 for the first quarter of 2012 was 11.2%.
- Completed acquisition of the assets of two consumer loan companies in Alabama, adding 19 net new branches to Regional Management.
- Obtained license to operate in New Mexico in April 2012 and plan to open first branch in May; will then operate branches in seven states.
“We are pleased with our first quarter results, which saw considerable growth in net loans, revenue and same-store sales while maintaining a consistently strong net charge-off percentage – a testament to our underwriting methodology and portfolio quality,” said Thomas Fortin, Chief Executive Officer of Regional Management Corp. “In addition, we continue to be vigilant with our expense structure, as we recorded an efficiency ratio of 40.6% in the quarter, maintaining our overall trend of reducing G&A expenses as a percentage of total revenue on a year-over-year basis. Overall, it was an important first quarter for Regional Management with our initial public offering at the end of March, as well as our acquisition in January that provided us with 19 net new branches in Alabama and I am proud of the entire Regional Management team. We remain committed to providing long-term shareholder value by prudently growing our business through branch expansion, as well as the increased distribution of various product offerings for underbanked consumers, while remaining disciplined and opportunistic in our acquisition pipeline.”