Regional Management Corp. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2015; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2015
January 28, 2016 at 04:24 pm
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Regional Management Corp. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2015. For the fourth quarter ended December 31, 2015, the company reported total revenue was $56.7 million from $53.8 million in the prior-year period. Net income for the fourth quarter of 2015 was $7.4 million compared to net income of $3.4 million in the prior-year period. Diluted earnings per share for the fourth quarter of 2015 were $0.56 from $0.26 in the prior-year period. Income before income taxes was $12.4 million against $5.7 million a year ago. Return on average assets was 4.9% against 2.6% a year ago. Return on average equity was 14.6% against 7.7% a year ago. Non-GAAP net income and diluted earnings per share would have been $6.1 million and $0.47, respectively. Revenue growth over the prior-year period was driven by a 15.1% increase in receivables, partially offset by an overall yield decline of 290 basis points. On a sequential basis, yield declined by 50 basis points, stabilizing from earlier quarters.
For the full year ended December 31, 2015, the company reported total revenue of $217.4 million from $204.7 million in the prior year. GAAP net income was $23.4 million compared to GAAP net income of $14.8 million in the prior year, and diluted earnings per share were $1.79 compared to $1.14 in the prior year. Income before income taxes was $38.2 million against $23.939 million a year ago. Return on average assets was 4.2% against 2.9% a year ago. Return on average equity was 12.2% against 8.7% a year ago. Non-GAAP net income for the full year ended December 31, 2015 totaled $23.8 million and non-GAAP diluted earnings per share were $1.82.
Net charge-offs for the fourth quarter of 2015 were $11.8 million, or 7.7% of average finance receivables.
Regional Management Corp. is a diversified consumer finance company. The Company provides installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Its products include small and large installment loans. It provides its customers optional payment and collateral protection insurance. It offers small installment loans with cash proceeds to customers ranging from $500 to $2,500, with terms of up to 48 months. It offers large installment loans with cash proceeds to customers ranging from $2,501 to $25,000, with terms between 18 and 60 months. It offers its customers optional payment and collateral protection insurance relating to its loan products, including credit life insurance, accident and health insurance, involuntary unemployment insurance, and personal property insurance. The Company also offers indirect retail installment loans of up to $7,500. It operates under the name Regional Finance.
Regional Management Corp. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2015; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2015