Loading...
•
Dec 31, 2022
Regional Management Q4 2022 Earnings Report
Announced results with net income of $2.4 million and diluted earnings per share of $0.25.
Key Takeaways
Regional Management Corp. reported a solid fourth quarter in 2022. Net income was $2.4 million, and diluted EPS was $0.25. The company grew its portfolio by $92 million to $1.7 billion. The company finished the quarter with a 30+ day delinquency rate of 7.1%.
Net income for the fourth quarter of 2022 was $2.4 million and diluted earnings per share was $0.25, inclusive of a $2.7 million impact to net income from the sale of $27.1 million of non-performing loans.
Net finance receivables as of December 31, 2022 were $1.70 billion, an increase of $273.1 million, or 19.2%, from the prior-year period.
Total revenue for the fourth quarter of 2022 was $132.0 million, an increase of $12.5 million, or 10.5%, from the prior-year period.
As of December 31, 2022, 30+ day contractual delinquencies totaled $119.8 million, or 7.1% of net finance receivables.
Revenue by Segment
Forward Guidance
Looking ahead, the company believes that the actions they took in 2022 position them to address the challenging economic environment and will enable them to respond quickly when conditions improve. In 2023, they will continue their focus on highest confidence originations, emphasizing quality over quantity.
Positive Outlook
- Continue focus on highest confidence originations.
- Emphasize quality over quantity.
- A greater percentage of originations will be to present and former borrowers.
- New borrower lending disproportionately skewed to newer states.
- Tightly manage expenses.
Challenges Ahead
- Expect receivables growth to slow in 2023.
- Challenging economic environment.
- Monitor credit performance and the macroeconomic environment closely, making further adjustments to underwriting as necessary.
- COVID-19 pandemic may impact Regional Management’s operations and financial condition.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...