- Net income of $8.7 million and
diluted earnings per share of $0.90 -
- 30+ day contractual delinquencies
of 7.2% as of March 31, 2023 -
- Continued early indications of
improved credit performance in the first quarter -
Regional Management Corp. (NYSE: RM), a diversified consumer
finance company, today announced results for the first quarter
ended March 31, 2023.
“We had a strong start to 2023, as our team skillfully navigated
a challenging economic environment,” said Robert W. Beck, President
and Chief Executive Officer of Regional Management Corp. “We earned
$8.7 million of net income and $0.90 of diluted EPS in the first
quarter by maintaining our focus on portfolio quality, expense
management, and strong execution of our core business. Due to our
conservative underwriting and first quarter seasonality, we
liquidated our portfolio by $23 million in the quarter,
intentionally slowing our year-over-year portfolio growth rate to
16%. In this macroeconomic environment, we continue to be
comfortable trading loan growth for credit quality, but we are
well-positioned to lean back into growth when warranted by the
economic conditions and overall performance of our portfolio.”
“Our tightening actions over the past several quarters have
improved our credit profile, which has benefited early-stage
delinquencies,” added Mr. Beck. “We continued to see significant
improvements in first payment default rates in the first quarter
compared to the same period in 2019. In addition, the delinquency
rate of accounts 1 to 59 days past due was 8.6% at the end of the
first quarter, a 230 basis point improvement from year-end and 270
basis points better than the first quarter of 2019. Our 30+ day
delinquency rate at the end of the first quarter was 7.2%, up 10
basis points from the end of the year and only 30 basis points, or
4%, higher than the first quarter of 2019. After adjusting for our
fourth quarter non-performing loan sale, our first quarter 30+ day
delinquency rate was 80 basis points better compared to year-end.
We are encouraged by the green shoots that we are observing in our
early delinquency buckets and the performance of our more recent
loan vintages.”
“Looking ahead, we are optimistic that tightened underwriting, a
declining inflation rate, and continued strength in the labor
market, particularly for our customer base, will drive further
credit improvement in our portfolio,” continued Mr. Beck. “We
remain focused on strong execution of our core business, including
originating high-quality loans within our tightened credit box,
closely managing expenses, and maintaining a strong balance sheet.
This straightforward approach allows us to concentrate our efforts
on the key drivers of our results. At the same time, we are
continuing to advance our long-term strategies of geographic
expansion and key investments in technology, digital initiatives,
and data and analytics. We expect to emerge from this economic
cycle as a stronger company with a larger, higher-quality portfolio
and improved operating efficiencies, well-positioned to deliver
attractive returns to our shareholders.”
Adjusted 30+ day delinquency is a non-GAAP measure. Please refer
to the reconciliations of non-GAAP measures to comparable GAAP
measures included at the end of this press release.
First Quarter 2023 Highlights
- Net income for the first quarter of 2023 was $8.7 million and
diluted earnings per share was $0.90.
- Net finance receivables as of March 31, 2023 were $1.7 billion,
an increase of $230.2 million, or 15.9%, from the prior-year
period.
- Large loan net finance receivables of $1.2 billion increased
$214.6 million, or 21.5%, from the prior-year period and
represented 72.3% of the total loan portfolio, compared to 69.0% in
the prior-year period.
- Small loan net finance receivables were $456.3 million, an
increase of 4.1% from the prior-year period.
- Total loan originations were $303.2 million in the first
quarter of 2023, a decrease of $22.8 million, or 7.0%, from the
prior-year period.
- Total revenue for the first quarter of 2023 was $135.4 million,
an increase of $14.5 million, or 12.0%, from the prior-year period.
- Interest and fee income increased $12.8 million, or 11.9%,
primarily due to higher average net finance receivables.
- Insurance income, net increased $0.4 million, or 3.9%, driven
by portfolio growth.
- Provision for credit losses for the first quarter of 2023 was
$47.7 million, an increase of $16.8 million, or 54.5%, from the
prior-year period.
- Annualized net credit losses as a percentage of average net
finance receivables for the first quarter of 2023 were 10.1%,
compared to 8.7% in the prior-year period.
- The provision for credit losses for the first quarter of 2023
included incremental reserves of $5.0 million primarily related to
the composition of the portfolio as compared to the fourth quarter
of 2022, which included our non-performing loan sale, partially
offset by portfolio liquidation.
- Allowance for credit losses was $183.8 million as of March 31,
2023.
- As of March 31, 2023, 30+ day contractual delinquencies totaled
$121.2 million, or 7.2% of net finance receivables, an increase of
10 basis points compared to December 31, 2022. On a non-GAAP basis,
adjusting for the fourth quarter non-performing loan sale, the
first quarter 30+ day contractual delinquency rate improved 80
basis points from December 31, 2022. The 30+ day contractual
delinquency compares favorably to the company’s $183.8 million
allowance for credit losses as of March 31, 2023.
- General and administrative expenses for the first quarter of
2023 were $59.3 million, an increase of $4.2 million, or 7.7%, from
the prior-year period.
- The operating expense ratio (annualized general and
administrative expenses as a percentage of average net finance
receivables) for the first quarter of 2023 was 14.0%, a 140 basis
point improvement compared to the prior-year period.
- Interest expense for the first quarter of 2023 was $16.8
million, an increase of $16.8 million from the prior-year period,
primarily due to a $10.2 million mark-to-market benefit to interest
expense from interest rate caps in the prior-year period.
- The company expanded its operations to the state of Arizona in
March.
Second Quarter 2023 Dividend
The company’s Board of Directors has declared a dividend of
$0.30 per common share for the second quarter of 2023. The dividend
will be paid on June 14, 2023 to shareholders of record as of the
close of business on May 24, 2023. The declaration and payment of
any future dividend is subject to the discretion of the Board of
Directors and will depend on a variety of factors, including the
company’s financial condition and results of operations.
Liquidity and Capital Resources
As of March 31, 2023, the company had net finance receivables of
$1.7 billion and debt of $1.3 billion. The debt consisted of:
- $105.3 million on the company’s $420 million senior revolving
credit facility,
- $35.2 million on the company’s aggregate $300 million revolving
warehouse credit facilities, and
- $1.2 billion through the company’s asset-backed
securitizations.
As of March 31, 2023, the company’s unused capacity to fund
future growth on its revolving credit facilities (subject to the
borrowing base) was $581 million, or 80.6%, and the company had
available liquidity of $182.0 million, including unrestricted cash
on hand and immediate availability to draw down cash from its
revolving credit facilities. As of March 31, 2023, the company’s
fixed-rate debt as a percentage of total debt was 89%, with a
weighted-average coupon of 3.6% and a weighted-average revolving
duration of 1.8 years.
The company had a funded debt-to-equity ratio of 4.2 to 1.0 and
a stockholders’ equity ratio of 18.6%, each as of March 31, 2023.
On a non-GAAP basis, the company had a funded debt-to-tangible
equity ratio of 4.4 to 1.0, as of March 31, 2023. Please refer to
the reconciliations of non-GAAP measures to comparable GAAP
measures included at the end of this press release.
Conference Call Information
Regional Management Corp. will host a conference call and
webcast today at 5:00 PM ET to discuss these results.
The dial-in number for the conference call is (855) 327-6837
(toll-free) or (631) 891-4304 (direct). Please dial the number 10
minutes prior to the scheduled start time.
*** A supplemental slide presentation will be made available
on Regional’s website prior to the earnings call at
www.RegionalManagement.com. ***
In addition, a live webcast of the conference call will be
available on Regional’s website at www.RegionalManagement.com.
A webcast replay of the call will be available at
www.RegionalManagement.com for one year following the call.
About Regional Management Corp.
Regional Management Corp. (NYSE: RM) is a diversified consumer
finance company that provides attractive, easy-to-understand
installment loan products primarily to customers with limited
access to consumer credit from banks, thrifts, credit card
companies, and other lenders. Regional Management operates under
the name “Regional Finance” online and in branch locations in 19
states across the United States. Most of its loan products are
secured, and each is structured on a fixed-rate, fixed-term basis
with fully amortizing equal monthly installment payments, repayable
at any time without penalty. Regional Management sources loans
through its multiple channel platform, which includes branches,
centrally managed direct mail campaigns, digital partners, and its
consumer website. For more information, please visit
www.RegionalManagement.com.
Forward-Looking Statements
This press release may contain various “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are not statements
of historical fact but instead represent Regional Management
Corp.’s expectations or beliefs concerning future events.
Forward-looking statements include, without limitation, statements
concerning financial outlooks or future plans, objectives, goals,
projections, strategies, events, or performance, and underlying
assumptions and other statements related thereto. Words such as
“may,” “will,” “should,” “likely,” “anticipates,” “expects,”
“intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,”
and similar expressions may be used to identify these
forward-looking statements. Such forward-looking statements speak
only as of the date on which they were made and are about matters
that are inherently subject to risks and uncertainties, many of
which are outside of the control of Regional Management. As a
result, actual performance and results may differ materially from
those contemplated by these forward-looking statements. Therefore,
investors should not place undue reliance on forward-looking
statements.
Factors that could cause actual results or performance to differ
from the expectations expressed or implied in forward-looking
statements include, but are not limited to, the following: managing
growth effectively, implementing Regional Management’s growth
strategy, and opening new branches as planned; Regional
Management’s convenience check strategy; Regional Management’s
policies and procedures for underwriting, processing, and servicing
loans; Regional Management’s ability to collect on its loan
portfolio; Regional Management’s insurance operations; exposure to
credit risk and repayment risk, which risks may increase in light
of adverse or recessionary economic conditions; the implementation
of evolving underwriting models and processes, including as to the
effectiveness of Regional Management's custom scorecards; changes
in the competitive environment in which Regional Management
operates or a decrease in the demand for its products; the
geographic concentration of Regional Management’s loan portfolio;
the failure of third-party service providers, including those
providing information technology products; changes in economic
conditions in the markets Regional Management serves, including
levels of unemployment and bankruptcies; the ability to achieve
successful acquisitions and strategic alliances; the ability to
make technological improvements as quickly as competitors; security
breaches, cyber-attacks, failures in information systems, or
fraudulent activity; the ability to originate loans; reliance on
information technology resources and providers, including the risk
of prolonged system outages; changes in current revenue and expense
trends, including trends affecting delinquencies and credit losses;
any future public health crises (including the resurgence of
COVID-19), including the impact of such crisis on our operations
and financial condition; changes in operating and administrative
expenses; the departure, transition, or replacement of key
personnel; the ability to timely and effectively implement,
transition to, and maintain the necessary information technology
systems, infrastructure, processes, and controls to support
Regional Management’s operations and initiatives; changes in
interest rates; existing sources of liquidity may become
insufficient or access to these sources may become unexpectedly
restricted; exposure to financial risk due to asset-backed
securitization transactions; risks related to regulation and legal
proceedings, including changes in laws or regulations or in the
interpretation or enforcement of laws or regulations; changes in
accounting standards, rules, and interpretations and the failure of
related assumptions and estimates; the impact of changes in tax
laws and guidance, including the timing and amount of revenues that
may be recognized; risks related to the ownership of Regional
Management’s common stock, including volatility in the market price
of shares of Regional Management’s common stock; the timing and
amount of future cash dividend payments; and anti-takeover
provisions in Regional Management’s charter documents and
applicable state law.
The foregoing factors and others are discussed in greater detail
in Regional Management’s filings with the Securities and Exchange
Commission. Regional Management will not update or revise
forward-looking statements to reflect events or circumstances after
the date of this press release or to reflect the occurrence of
unanticipated events or the non-occurrence of anticipated events,
whether as a result of new information, future developments, or
otherwise, except as required by law. Regional Management is not
responsible for changes made to this document by wire services or
Internet services.
Regional Management Corp. and
Subsidiaries
Consolidated Statements of
Income
(Unaudited)
(dollars in thousands, except
per share amounts)
Better (Worse)
1Q 23
1Q 22
$
%
Revenue
Interest and fee income
$
120,407
$
107,631
$
12,776
11.9
%
Insurance income, net
10,959
10,544
415
3.9
%
Other income
4,012
2,673
1,339
50.1
%
Total revenue
135,378
120,848
14,530
12.0
%
Expenses
Provision for credit losses
47,668
30,858
(16,810
)
(54.5
)%
Personnel
38,597
35,654
(2,943
)
(8.3
)%
Occupancy
6,288
5,808
(480
)
(8.3
)%
Marketing
3,379
3,091
(288
)
(9.3
)%
Other
11,059
10,547
(512
)
(4.9
)%
Total general and administrative
59,323
55,100
(4,223
)
(7.7
)%
Interest expense
16,782
(59
)
(16,841
)
NM
Income before income taxes
11,605
34,949
(23,344
)
(66.8
)%
Income taxes
2,916
8,166
5,250
64.3
%
Net income
$
8,689
$
26,783
$
(18,094
)
(67.6
)%
Net income per common share:
Basic
$
0.93
$
2.81
$
(1.88
)
(66.9
)%
Diluted
$
0.90
$
2.67
$
(1.77
)
(66.3
)%
Weighted-average common shares
outstanding:
Basic
9,325
9,533
208
2.2
%
Diluted
9,622
10,022
400
4.0
%
Return on average assets (annualized)
2.0
%
7.3
%
Return on average equity (annualized)
11.0
%
36.7
%
NM - Not Meaningful
Regional Management Corp. and
Subsidiaries
Consolidated Balance
Sheets
(Unaudited)
(dollars in thousands, except
par value amounts)
Increase (Decrease)
1Q 23
1Q 22
$
%
Assets
Cash
$
7,108
$
17,635
$
(10,527
)
(59.7
)%
Net finance receivables
1,676,230
1,446,071
230,159
15.9
%
Unearned insurance premiums
(49,126
)
(47,075
)
(2,051
)
(4.4
)%
Allowance for credit losses
(183,800
)
(158,800
)
(25,000
)
(15.7
)%
Net finance receivables, less unearned
insurance premiums and allowance for credit losses
1,443,304
1,240,196
203,108
16.4
%
Restricted cash
127,178
138,919
(11,741
)
(8.5
)%
Lease assets
34,507
28,087
6,420
22.9
%
Restricted available-for-sale
investments
22,489
—
22,489
100.0
%
Property and equipment
14,999
13,036
1,963
15.1
%
Deferred tax assets, net
14,690
18,093
(3,403
)
(18.8
)%
Intangible assets
12,972
9,475
3,497
36.9
%
Other assets
23,867
32,230
(8,363
)
(25.9
)%
Total assets
$
1,701,114
$
1,497,671
$
203,443
13.6
%
Liabilities and Stockholders’
Equity
Liabilities:
Debt
$
1,329,677
$
1,134,377
$
195,300
17.2
%
Unamortized debt issuance costs
(8,215
)
(12,001
)
3,786
31.5
%
Net debt
1,321,462
1,122,376
199,086
17.7
%
Lease liabilities
36,905
30,251
6,654
22.0
%
Accounts payable and accrued expenses
26,054
46,302
(20,248
)
(43.7
)%
Total liabilities
1,384,421
1,198,929
185,492
15.5
%
Stockholders’ equity:
Preferred stock ($0.10 par value, 100,000
shares authorized, none issued or outstanding)
—
—
—
—
Common stock ($0.10 par value, 1,000,000
shares authorized, 14,385 shares issued and 9,578 shares
outstanding at March 31, 2023 and 14,360 shares issued and
9,806 shares outstanding at March 31, 2022)
1,438
1,436
2
0.1
%
Additional paid-in capital
114,452
105,989
8,463
8.0
%
Retained earnings
351,324
329,878
21,446
6.5
%
Accumulated other comprehensive loss
(378
)
—
(378
)
(100.0
)%
Treasury stock (4,807 shares at
March 31, 2023 and 4,554 shares at March 31, 2022)
(150,143
)
(138,561
)
(11,582
)
(8.4
)%
Total stockholders’ equity
316,693
298,742
17,951
6.0
%
Total liabilities and stockholders’
equity
$
1,701,114
$
1,497,671
$
203,443
13.6
%
Regional Management Corp. and
Subsidiaries
Selected Financial
Data
(Unaudited)
(dollars in thousands, except
per share amounts)
Net Finance Receivables by
Product
1Q 23
4Q 22
QoQ $ Inc (Dec)
QoQ % Inc (Dec)
1Q 22
YoY $ Inc (Dec)
YoY % Inc (Dec)
Small loans
$
456,313
$
481,605
$
(25,292
)
(5.3
)%
$
438,153
$
18,160
4.1
%
Large loans
1,211,836
1,208,185
3,651
0.3
%
997,226
214,610
21.5
%
Retail loans
8,081
9,603
(1,522
)
(15.8
)%
10,692
(2,611
)
(24.4
)%
Total net finance receivables
$
1,676,230
$
1,699,393
$
(23,163
)
(1.4
)%
$
1,446,071
$
230,159
15.9
%
Number of branches at period end
344
345
(1
)
(0.3
)%
354
(10
)
(2.8
)%
Net finance receivables per branch
$
4,873
$
4,926
$
(53
)
(1.1
)%
$
4,085
$
788
19.3
%
Averages and Yields
1Q 23
4Q 22
1Q 22
Average Net Finance
Receivables
Average Yield (1)
Average Net Finance
Receivables
Average Yield (1)
Average Net Finance
Receivables
Average Yield (1)
Small loans
$
467,851
35.0
%
$
479,777
33.5
%
$
440,936
36.0
%
Large loans
1,215,547
26.0
%
1,155,629
26.6
%
982,881
27.5
%
Retail loans
8,954
18.6
%
10,563
16.3
%
10,620
18.4
%
Total interest and fee yield
$
1,692,352
28.5
%
$
1,645,969
28.5
%
$
1,434,437
30.0
%
Total revenue yield
$
1,692,352
32.0
%
$
1,645,969
32.1
%
$
1,434,437
33.7
%
(1) Annualized interest and fee income as a percentage of
average net finance receivables.
Components of Increase in
Interest and Fee Income
1Q 23 Compared to 1Q
22
Increase (Decrease)
Volume
Rate
Volume & Rate
Total
Small loans
$
2,421
$
(1,034
)
$
(63
)
$
1,324
Large loans
15,975
(3,600
)
(852
)
11,523
Retail loans
(77
)
7
(1
)
(71
)
Product mix
1,033
(947
)
(86
)
—
Total increase in interest and fee
income
$
19,352
$
(5,574
)
$
(1,002
)
$
12,776
Loans Originated (1)
1Q 23
4Q 22
QoQ $ Inc (Dec)
QoQ % Inc (Dec)
1Q 22
YoY $ Inc (Dec)
YoY % Inc (Dec)
Small loans
$
109,484
$
171,511
$
(62,027
)
(36.2
)%
$
137,131
$
(27,647
)
(20.2
)%
Large loans
193,571
297,447
(103,876
)
(34.9
)%
186,279
7,292
3.9
%
Retail loans
146
1,390
(1,244
)
(89.5
)%
2,590
(2,444
)
(94.4
)%
Total loans originated
$
303,201
$
470,348
$
(167,147
)
(35.5
)%
$
326,000
$
(22,799
)
(7.0
)%
(1) Represents the principal balance of loan
originations and refinancings.
Other Key Metrics
1Q 23
4Q 22
1Q 22
Net credit losses
$
42,668
$
61,786
$
31,358
Percentage of average net finance
receivables (annualized)
10.1
%
15.0
%
8.7
%
Provision for credit losses
$
47,668
$
60,786
$
30,858
Percentage of average net finance
receivables (annualized)
11.3
%
14.8
%
8.6
%
Percentage of total revenue
35.2
%
46.0
%
25.5
%
General and administrative expenses
$
59,323
$
55,143
$
55,100
Percentage of average net finance
receivables (annualized)
14.0
%
13.4
%
15.4
%
Percentage of total revenue
43.8
%
41.8
%
45.6
%
Same store results (1):
Net finance receivables at period-end
$
1,619,407
$
1,625,008
$
1,406,904
Net finance receivable growth rate
12.3
%
14.8
%
27.3
%
Number of branches in calculation
325
320
331
(1) Same store sales reflect the change in
year-over-year sales for the comparable branch base. The comparable
branch base includes those branches open for at least one
year.
Contractual Delinquency by
Aging
1Q 23
4Q 22
1Q 22
Allowance for credit losses
$
183,800
11.0
%
$
178,800
10.5
%
$
158,800
11.0
%
Current
1,438,354
85.8
%
1,431,502
84.2
%
1,268,367
87.7
%
1 to 29 days past due
116,723
7.0
%
148,048
8.7
%
95,689
6.6
%
Delinquent accounts:
30 to 59 days
27,428
1.6
%
36,208
2.2
%
19,818
1.4
%
60 to 89 days
25,178
1.5
%
31,352
1.8
%
16,390
1.1
%
90 to 119 days
23,148
1.4
%
24,293
1.4
%
15,636
1.1
%
120 to 149 days
22,263
1.3
%
16,257
1.0
%
15,322
1.1
%
150 to 179 days
23,136
1.4
%
11,733
0.7
%
14,849
1.0
%
Total contractual delinquency
$
121,153
7.2
%
$
119,843
7.1
%
$
82,015
5.7
%
Total net finance receivables
$
1,676,230
100.0
%
$
1,699,393
100.0
%
$
1,446,071
100.0
%
1 day and over past due
$
237,876
14.2
%
$
267,891
15.8
%
$
177,704
12.3
%
Contractual Delinquency by
Product
1Q 23
4Q 22
1Q 22
Small loans
$
45,600
10.0
%
$
43,703
9.1
%
$
34,861
8.0
%
Large loans
74,606
6.2
%
75,349
6.2
%
46,375
4.7
%
Retail loans
947
11.7
%
791
8.2
%
779
7.3
%
Total contractual delinquency
$
121,153
7.2
%
$
119,843
7.1
%
$
82,015
5.7
%
Income Statement Quarterly
Trend
1Q 22
2Q 22
3Q 22
4Q 22
1Q 23
QoQ $ B(W)
YoY $ B(W)
Revenue
Interest and fee income
$
107,631
$
109,771
$
116,020
$
117,432
$
120,407
$
2,975
$
12,776
Insurance income, net
10,544
10,220
11,987
10,751
10,959
208
415
Other income
2,673
2,880
3,445
3,833
4,012
179
1,339
Total revenue
120,848
122,871
131,452
132,016
135,378
3,362
14,530
Expenses
Provision for credit losses
30,858
45,400
48,071
60,786
47,668
13,118
(16,810
)
Personnel
35,654
33,941
36,979
34,669
38,597
(3,928
)
(2,943
)
Occupancy
5,808
6,156
5,848
5,997
6,288
(291
)
(480
)
Marketing
3,091
4,108
3,940
4,239
3,379
860
(288
)
Other
10,547
9,916
11,397
10,238
11,059
(821
)
(512
)
Total general and administrative
55,100
54,121
58,164
55,143
59,323
(4,180
)
(4,223
)
Interest expense
(59
)
7,564
11,863
14,855
16,782
(1,927
)
(16,841
)
Income before income taxes
34,949
15,786
13,354
1,232
11,605
10,373
(23,344
)
Income taxes
8,166
3,804
3,286
(1,159
)
2,916
(4,075
)
5,250
Net income
$
26,783
$
11,982
$
10,068
$
2,391
$
8,689
$
6,298
$
(18,094
)
Net income per common share:
Basic
$
2.81
$
1.29
$
1.09
$
0.26
$
0.93
$
0.67
$
(1.88
)
Diluted
$
2.67
$
1.24
$
1.06
$
0.25
$
0.90
$
0.65
$
(1.77
)
Weighted-average shares outstanding:
Basic
9,533
9,261
9,195
9,199
9,325
(126
)
208
Diluted
10,022
9,669
9,526
9,411
9,622
(211
)
400
Balance Sheet Quarterly
Trend
1Q 22
2Q 22
3Q 22
4Q 22
1Q 23
QoQ $ Inc (Dec)
YoY $ Inc (Dec)
Total assets
$
1,497,671
$
1,547,944
$
1,606,550
$
1,724,987
$
1,701,114
$
(23,873
)
$
203,443
Net finance receivables
$
1,446,071
$
1,525,659
$
1,607,598
$
1,699,393
$
1,676,230
$
(23,163
)
$
230,159
Allowance for credit losses
$
158,800
$
167,500
$
179,800
$
178,800
$
183,800
$
5,000
$
25,000
Debt
$
1,134,377
$
1,194,570
$
1,241,039
$
1,355,359
$
1,329,677
$
(25,682
)
$
195,300
Other Key Metrics Quarterly
Trend
1Q 22
2Q 22
3Q 22
4Q 22
1Q 23
QoQ Inc (Dec)
YoY Inc (Dec)
Interest and fee yield (annualized)
30.0
%
29.8
%
29.6
%
28.5
%
28.5
%
—
(1.5
)%
Efficiency ratio (1)
45.6
%
44.0
%
44.2
%
41.8
%
43.8
%
2.0
%
(1.8
)%
Operating expense ratio (2)
15.4
%
14.7
%
14.9
%
13.4
%
14.0
%
0.6
%
(1.4
)%
30+ contractual delinquency
5.7
%
6.2
%
7.2
%
7.1
%
7.2
%
0.1
%
1.5
%
Net credit loss ratio (3)
8.7
%
10.0
%
9.1
%
15.0
%
10.1
%
(4.9
)%
1.4
%
Book value per share
$
30.47
$
31.15
$
32.18
$
32.41
$
33.06
$
0.65
$
2.59
(1) General and administrative expenses as a
percentage of total revenue.
(2) Annualized general and administrative expenses
as a percentage of average net finance receivables.
(3) Annualized net credit losses as a percentage of
average net finance receivables.
Non-GAAP Financial Measures
In addition to financial measures presented in accordance with
generally accepted accounting principles (“GAAP”), this press
release contains certain non-GAAP financial measures. The company’s
management utilizes non-GAAP measures as additional metrics to aid
in, and enhance, its understanding of the company’s financial
results. Tangible equity and the funded debt-to-tangible equity
ratio are non-GAAP measures that adjust GAAP measures to exclude
intangible assets. Management uses these equity measures to
evaluate and manage the company’s capital and leverage position.
The company also believes that these equity measures are commonly
used in the financial services industry and provide useful
information to users of the company’s financial statements in the
evaluation of its capital and leverage position. Adjusted
delinquency and adjusted delinquency rate are non-GAAP measures
that adjust GAAP measures to exclude the impacts of the
non-performing loan sale. Management uses these adjusted measures
to evaluate and manage the company's performance by excluding
certain material items that may not be representative of the
company's financial results. As a result, the company also believes
that these adjusted measures will aid users of its financial
statements in the evaluation of its operating performance.
This non-GAAP financial information should be considered in
addition to, not as a substitute for or superior to, measures of
financial performance prepared in accordance with GAAP. In
addition, the company’s non-GAAP measures may not be comparable to
similarly titled non-GAAP measures of other companies. The
following tables provide a reconciliation of GAAP measures to
non-GAAP measures.
1Q 23
Debt
$
1,329,677
Total stockholders' equity
316,693
Less: Intangible assets
12,972
Tangible equity (non-GAAP)
$
303,721
Funded debt-to-equity ratio
4.2
x
Funded debt-to-tangible equity ratio
(non-GAAP)
4.4
x
4Q 22 Non-GAAP
Reconciliation
GAAP
Adjustments
Non-GAAP
30+ day contractual delinquency ($)
(1)
$
119,843
$
17,454
$
137,297
Net finance receivables (2)
$
1,699,393
$
17,454
$
1,716,847
30+ day contractual delinquency (%)
(1)
7.1
%
0.9
%
8.0
%
(1) 30+ day contractual delinquency adjustments (in dollars and
percentage) include delinquencies pertaining to the non-performing
loan sale.
(2) Net finance receivables adjustments include delinquent
receivables pertaining to the non-performing loan sale.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230503005697/en/
Investor Relations Garrett Edson, (203) 682-8331
investor.relations@regionalmanagement.com
Regional Management (NYSE:RM)
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Regional Management (NYSE:RM)
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부터 5월(5) 2023 으로 5월(5) 2024