Regional Management Misses Estimate
Regional Management Corp. (RM) 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 cents.
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 (DFS) 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 cents.
Encore Capital Group Inc. (ECPG) 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 year-ago quarter.
SLM Corporation (SLM) 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.
Zacks Rank
Regional Management carries a Zacks Rank #4 (Sell).
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