Regional Management Corp.
) announced fourth-quarter 2012 operating earnings of 52 cents,
missing the Zacks Consensus Estimate by a penny. Earnings per
share also lagged the year-ago quarter's earnings of 66
Net income amounted to $6.6 million, up 3.7% over $6.4 million
earned in the prior-year quarter.
Total revenue amounted to $37 million, up 25.7% over $29.4
million generated in the fourth quarter of 2011. Same store
revenues increased 17% during the reported quarter.
Total expenses were $26.8 million, increasing from $19.4
million in the year-ago quarter. General and administrative
expenses amounted to $14.9 million, surging 49.6% over $10
million incurred in the year-ago quarter.
Regional Management opened 8 branches during the reported
quarter, taking the total number of branches at the end of 2012
to 221. Further, the company entered Ga. with the opening of a
branch in Jan 2013.
Full Year Highlights
For 2012, Regional Management's operating earnings amounted to
$27 million or $2.12 per share. Earnings per share lagged the
Zacks Consensus estimate of $2.25. However, operating earnings
increased 27.2% over 2011.
Operating income excludes the impact of the initial public
offer related expenses and debt repayment. Including these
one-time items, net income for 2012 came in at $25.4 million or
$2.12 per share. Net income increased 19.4% over $21.2 million
earned in 2011.
Total revenue in 2012 came in at $136 million, up 29.3% over
$105.2 million earned in 2011. Total expenses amounted to $96.1
million, increasing from $71.8 million in 2011.
Balance Sheet and Capital Structure
Regional Management exited 2012 with a cash balance of $3.3
million, declining from $4.8 million as of Dec 31, 2011. The
company had total assets of $431.2 million and shareholders'
equity of $130.6 million as of Dec 31, 2012
Finance receivables at the end of 2012 amounted to $437.6
million, up 42.7% from Dec 31, 2011. Regional Management had
$292.4 million debt outstanding under its $325 million senior
revolving credit facility and $1.5 million other notes payable
line of credit as of Dec 31, 2012.
Results at Other Consumer Loan Companies
Discover Financial Services
) reported fourth-quarter 2012 earnings per share of $1.07,
lagging the Zacks Consensus Estimate of $1.13. However, earnings
per share surpassed the year-ago quarter's earnings of 95
Encore Capital Group Inc.
) delivered operating earnings of 80 cents per share in the
fourth quarter of 2012, surpassing the Zacks Consensus Estimate
by a penny. Results were 19% ahead of 67 cents earned in the
) reported its fourth-quarter earnings of 55 cents per share,
beating the Zacks Consensus Estimate by 2 cents and the year-ago
earnings by 4 cents.
Regional Management carries a Zacks Rank #4 (Sell).
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