Regional Management Corp. (NYSE:RM) Q4 2018 Earnings Conference Call Transcript

Feb 12, 2019 • 05:00 pm ET


Regional Management Corp. (NYSE:RM) Q4 2018 Earnings Conference Call Transcript


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Thank you for standing by. This is the conference operator. Welcome to the Regional Management Corporation Fourth Quarter 2018 Earnings Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. (Operator Instructions)

I would now like to turn the conference over to Garrett Edson, Senior Vice President, ICR. Please go ahead.

Garrett Edson

Thank you and good afternoon. By now, everyone should have access to our earnings announcement and slide presentation, which was released prior to this call, which may also be found on our website at

Before we begin our formal remarks, I need to remind everyone that part of our discussion today may include forward-looking statements, which are based on the expectations, estimates and projections of Management as of today. The forward-looking statements in our discussion are subject to various assumptions, risks, uncertainties and other factors that are difficult to predict and which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These statements are not guarantees of future performance and therefore undue reliance should not be placed upon them. We refer all of you to our recent filings with the SEC for a more detailed discussion of the risks and uncertainties that could impact the future operating results and financial condition of Regional Management. We disclaim any intentions or obligations to update or revise any forward-looking statements, except to the extent required by applicable law.

I would now like to introduce Peter Knitzer, President and CEO of Regional Management Corp.

Peter Knitzer

Thanks, Garrett, and welcome to our fourth quarter 2018 earnings call. As always, I want to thank everyone for participating this afternoon and for your continued interest in our Company. I'm here with our Executive Vice President and CFO, Don Thomas, who will speak later on the call. For those of you with access to a computer or mobile device, we've once again posted a supplemental presentation on our website at to provide additional color to our remarks.

Our fourth quarter capped off a successful year at Regional. Our underlying business remained strong as we continued to generate consistent double-digit growth, along with stable credit and disciplined expense management. We are well positioned for success in 2019 and to create additional shareholder value over the long-term. For the fourth quarter, we reported diluted EPS of $0.90 versus $0.92 in the fourth quarter of 2017. As a reminder, the prior year period included $0.30 per share tax benefits. Excluding these non-operating benefits, diluted EPS rose by a healthy margin from the prior year period. We also generated year-over-year revenue growth of 16%, driven by a 14% or $115 million increase in financial receivables. We've now grown revenue by double-digits for 10 consecutive quarters and have achieved double-digit growth in finance receivables for 15 consecutive quarters.

Let me take a couple of minutes to talk about where we currently stand and our overall long-term strategy.