Regional Management Misses Estimate - Analyst Blog
28 Febbraio 2013 - 10:00AM
Zacks
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).
DISCOVER FIN SV (DFS): Free Stock Analysis Report
ENCORE CAP GRP (ECPG): Free Stock Analysis Report
REGIONAL MANAGE (RM): Free Stock Analysis Report
SLM CORP (SLM): Free Stock Analysis Report
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