Regional Management Corp. (NYSE: RM), a diversified specialty consumer finance company, today announced results for the third quarter and nine-month period ended September 30, 2012.
Third Quarter 2012 Highlights and Subsequent Events
- Total third quarter 2012 revenue was $35.5 million, a 32.8% increase from the prior-year period.
- Net income for the third quarter of 2012 was $7.0 million, a 34.8% increase from the prior-year period, and diluted earnings per share was $0.55 based on a diluted share count of 12.8 million.
- Finance receivables as of September 30, 2012 were $396.9 million, an increase of 40.0% from the prior-year period. Net charge-offs as a percentage of average finance receivables for the third quarter of 2012 were 6.5%, an increase from 6.0% in the prior-year period.
- Same-store revenue growth 1 for the third quarter of 2012 was 18.3%.
- Opened 7 new branches in the third quarter of 2012; as of September 30, 2012, Regional Management’s branch network consisted of 213 locations.
“We were pleased with our third quarter performance, led by a third consecutive quarter of 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 particular, we are excited by the significant quarterly growth in our furniture and appliance purchase loan unit, where we have already more than doubled our total receivables from the end of 2011, providing us with additional cross-selling opportunities. We furthered our branch expansion, opening an additional 7 de novo branches in the quarter, bringing our total for the year to 24 as of September 30. At the same time, we did see an increase in our net chargeoffs as a percentage of average finance receivables, as well as in our efficiency ratio. We are keeping a close eye on both figures to ensure our cost structure is aligned properly with our growth plans.”