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, 2013.
Second Quarter 2013 Highlights
- Total second quarter 2013 revenue was $39.4 million, a 23.0% increase from the prior-year period.
- Net income for the second quarter of 2013 was $6.7 million, a 0.5% increase from net income of $6.6 million in the prior-year period. Diluted earnings per share was $0.52 based on a diluted share count of 12.9 million.
- Finance receivables as of June 30, 2013 were $460.4 million, an increase of 33.3% from the prior-year period. Annualized net charge-offs as a percentage of average finance receivables for the second quarter of 2013 were 6.7%, an increase from 6.1% in the prior-year period.
- Same-store revenue growth 1 for the second quarter of 2013 was 17.2%. Same-store finance receivables growth for the second quarter of 2013 was 22.4%.
- Opened 29 de novo branches and acquired 2 branches in the second quarter of 2013; as of June 30, 2013, Regional Management’s branch network consisted of 263 locations.
- On May 14, 2013, Regional Management received an increase in the availability of the company’s senior revolving credit facility to $500 million from its previous amount of $325 million, with a maturity date of May 2016.
“We once again achieved strong top-line and same-store sales growth, a testament to the efforts of our entire Regional team,” said Thomas Fortin, Chief Executive Officer of Regional Management Corp. “Further, we had two other significant accomplishments in the quarter – the increase in our credit facility to $500 million, and the substantial completion of our 2013 de novo branch expansion strategy with the opening of 29 new branches. Our branch openings in the second quarter of 2013 far outpaced the 12 branch openings in the second quarter of 2012, which increased our new branch expenses by approximately $0.6 million from last year’s second quarter. When combined with a year-over-year decline in our total yield, our efficiency ratio remained higher than normal. We will be watching both our yield and efficiency ratio in the back half of the year to ensure that they align more closely with our historical levels and overall strategy.”
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