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Dec 31, 2019
Regional Management Q4 2019 Earnings Report
Announced fourth quarter 2019 results, with revenue growth driven by average finance receivables growth.
Key Takeaways
Regional Management Corp. reported a strong fourth quarter in 2019, marked by a 17.0% increase in revenue and a 45.6% increase in net income compared to the prior-year period. Diluted earnings per share increased to $1.38, and total finance receivables reached $1.1 billion, demonstrating substantial growth in the loan portfolio.
Net income increased by 45.6% year-over-year, reaching $15.7 million.
Diluted earnings per share rose to $1.38, compared to $0.90 in the prior-year period.
Total finance receivables grew by 18.5% to $1.1 billion.
Revenue increased by 17.0% to $98.0 million.
Revenue by Segment
Forward Guidance
The company expects that the outage will adversely impact net income by approximately $1.3 million in the first quarter of 2020 and by an additional $0.3 million throughout the remainder of the year. The company continues to expect to open a total of between 25 and 30 de novo branches for the full year 2020.
Positive Outlook
- The loan management system has functioned normally since its restoration, and all branches have been fully operational.
- The company continues to expect to open a total of between 25 and 30 de novo branches for the full year 2020.
- The company had a funded debt-to-equity ratio of 2.7 to 1.0 and a shareholder equity ratio of 26.1% as of December 31, 2019.
- The company’s unused capacity on its revolving credit facilities (subject to the borrowing base) was $369.3 million, or 48.3%, as of December 31, 2019.
- The company is confident that the IT issue will not occur again.
Challenges Ahead
- The company expects that the outage will adversely impact net income by approximately $1.3 million in the first quarter of 2020 and by an additional $0.3 million throughout the remainder of the year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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