Regional Management Corp. (NYSE:RM), a diversified specialty consumer finance company, today announced results for the fourth quarter and full year ended December 31, 2013.
Fourth Quarter 2013 Highlights
- Total fourth quarter 2013 revenue was $48.5 million, a 31.6% increase from the prior-year period.
- Same-store 1 revenue growth for the fourth quarter of 2013 was 17.0%. Same-store finance receivables growth for the fourth quarter of 2013 was 11.5%.
- Finance receivables as of December 31, 2013 were $544.7 million, an increase of 23.9% from the prior-year period.
- GAAP net income for the fourth quarter of 2013 was $8.4 million, a 29.6% increase from net income of $6.5 million in the prior-year period. Diluted earnings per share were $0.65 based on a diluted share count of 13.0 million. Excluding $1.5 million of pre-tax expenses related to director compensation and the secondary offering completed in December 2013, non-GAAP net income for the fourth quarter of 2013 was $9.4 million and diluted earnings per share were $0.73. For a reconciliation of non-GAAP to GAAP measures, please review the disclosures and table included with this release.
- Annualized net charge-offs as a percentage of average finance receivables for the fourth quarter of 2013 was 7.8%, an increase from 7.1% in the prior-year period (for the full year 2013, net charge-offs as a percentage of average finance receivables were 6.9%; an increase from 6.5% in the prior year). Provision for credit losses for the fourth quarter of 2013 was 24.0% of revenue, comparable with the prior-year period.
- On December 10, 2013, Regional Management announced the closing of a secondary offering of 2,346,074 shares of its common stock, at a price of $31.00 per share, by: (i) Palladium Equity Partners III, L.P., an existing stockholder of Regional Management and an affiliate of Palladium Equity Partners; (ii) Parallel 2005 Equity Fund, LP, an existing stockholder of Regional Management and an affiliate of Parallel Investment Partners; (iii) entities affiliated with Richard A. Godley, a director, existing stockholder and founder of Regional Management; and (iv) C. Glynn Quattlebaum, President and Chief Operating Officer of Regional Management and an existing stockholder and founder of Regional Management. Regional Management did not receive any proceeds from the offering.