Regional Management Corp. (NYSE: RM), a diversified specialty consumer finance company, today announced results for the second quarter and six-month period ended June 30, 2012.
Second Quarter 2012 Highlights and Subsequent Events
- Total second quarter 2012 revenue was $32.0 million, a 31.4% increase from the prior-year period.
- Net income for the second quarter of 2012 was $6.6 million, a 40.3% increase from the prior-year period, and diluted earnings per share was $0.52 based on a diluted share count of 12.7 million.
- Finance receivables as of June 30, 2012 were $345.4 million, an increase of 33.3% from the prior-year period. Net charge-offs as a percentage of average finance receivables for the second quarter of 2012 were 6.1%, an increase from 5.6% in the prior-year period.
- Same-store revenue growth 1 for the second quarter of 2012 was 17.3%.
- Opened 12 new branches in the second quarter of 2012, including the first branch in New Mexico in May 2012. As of June 30, 2012, Regional Management’s branch network consisted of 206 locations.
- On July 31, 2012, Regional Management received an increase in the availability of the company’s senior revolving credit facility to $325 million from its previous amount of $255 million, with a maturity date of July 2015.
“We performed solidly in the second quarter, led by double-digit growth in net finance receivables, revenue, same-store sales and net income,” said Thomas Fortin, Chief Executive Officer of Regional Management Corp. “In addition, we recorded an efficiency ratio of 41.4% in the second quarter, a decline of 30 basis points from the prior-year period and continuing our overall trend of reducing G&A expenses as a percentage of total revenue on a year-over-year basis, despite the increase in costs of being a public company. We also continued our westward expansion in the quarter with the opening of our first branch in New Mexico, and were pleased to open 12 de novo branches in the quarter, bringing our total for the year to 17 as of June 30. Finally, we are very pleased to receive a substantial increase in the availability of our senior revolving credit facility, which is a testament to our fiscal responsibility and strength as we continue to expand Regional Management. We intend to utilize any additional monies from the facility to fund our product, channel and de novo branch growth strategies, as well as any value-added acquisition opportunities.”