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Sep 30, 2021
Regional Management Q3 2021 Earnings Report
Announced third quarter 2021 results with net income of $22.2 million and diluted earnings per share of $2.11.
Key Takeaways
Regional Management Corp. reported a strong third quarter with record revenue of $111.5 million, up 23% year-over-year, and net income of $22.2 million. The company's strategic initiatives and omni-channel model fueled growth, with the portfolio exceeding $1.3 billion at quarter-end.
Net income for the third quarter of 2021 was $22.2 million and diluted earnings per share was $2.11.
Net finance receivables as of September 30, 2021 hit another all-time high at $1.3 billion, a record increase of $254.7 million, or 24.0%, from the prior-year period.
Total core small and large loan net finance receivables increased $263.4 million, or 25.4%, compared to the prior-year period.
Total revenue for the third quarter of 2021 was a record $111.5 million, an increase of $20.9 million, or 23.1%, from the prior-year period.
Revenue by Segment
Forward Guidance
The company is raising its full year 2021 outlook for net income to between $85 million and $87 million, from its previous outlook of net income between $75 million and $80 million.
Positive Outlook
- Current economic conditions remain steady
- The full year 2021 net credit loss rate will be less than 7.0%
- Net finance receivables will be approximately $1.4 billion at the end of 2021
- The company will further build its allowance for credit losses in the fourth quarter due to net finance receivables growth
- Assuming the economic recovery remains on track, the company believes that credit performance will remain strong into next year and that the company’s 2022 net credit loss rate will be at or below 8.5%
Challenges Ahead
- The allowance for credit losses rate will continue to normalize gradually toward pre-pandemic levels of approximately 10.8% by mid-2022
- General and administrative expenses will increase in the fourth quarter as the company continues to invest in its growth initiatives
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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