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Regional Management Corp. Announces Selected Preliminary Financial Results For Fourth Quarter 2012

Stocks in this article: RM

Regional Management Corp. (NYSE: RM), a diversified specialty consumer finance company, announced today selected preliminary, unaudited financial results for the fourth quarter ended December 31, 2012.

  • Total fourth quarter 2012 revenue is expected to be in the range of $37.6 to $38 million.
  • Finance receivables as of December 31, 2012 were approximately $437 million
  • Same-store revenue growth for the fourth quarter of 2012 is expected to be in the range of 16% to 17%.
  • Total provision for loan losses for the fourth quarter of 2012 is expected to be in the range of $9 to $9.5 million.
  • Total General & Administrative expense for the fourth quarter of 2012 is expected to be in the range of $14.7 to $15 million.
  • Net income for the fourth quarter of 2012 is expected to be in the range of $6.4 to $7 million.
  • Diluted earnings per share for the fourth quarter of 2012 is expected to be in the range of $0.50 to $0.55, based on a diluted share count of 12.8 million.
  • Opened 8 new branches in the fourth quarter of 2012; as of December 31, 2012, Regional Management’s branch network consisted of 221 locations.

“During the fourth quarter, we achieved strong growth of our loan portfolio through all channels. We opened 8 branches in the fourth quarter as we accelerated our original expansion plans to take advantage of favorable market conditions. Our RMC Retail business unit has continued to produce exceptional results, and we completed a successful, expanded holiday live check campaign which surpassed our expectations. Overall, our growth considerably increased our finance receivables,” said Thomas Fortin, Chief Executive Officer of Regional Management Corp. “We attribute some of the success of the holiday live check campaign to expanded testing of our product and customer mix that includes marketing to additional customers who have a higher credit score, and thus received a larger denomination check with a slightly lower APR. Yield for the quarter was lower than originally forecast as we conducted several live check test scenarios, the results of which will help us focus future campaigns. Additionally, RMC Retail’s success - our lowest yielding business unit - increased its proportion of our product mix. We will earn the revenue from our fourth quarter growth in future periods, but our accounting policy requires us to increase our provision for loan losses in the current period, and we incurred additional marketing, overtime, and interest costs as well.”

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