Regional Managment Corp (RM) Tops Q3 EPS by 46c, Revenues Beat
Regional Managment Corp (NYSE: RM) reported Q3 EPS of $1.01, $0.46 better than the analyst estimate of $0.55. Revenue for the quarter came in at $90.5 million versus the consensus estimate of $86.26 million.
“I am delighted with our third quarter performance, which is a validation of our sustainable operating model, our team’s ability to execute in a challenging environment, and the fundamental resilience of our customers,” said Robert W. Beck, President and Chief Executive Officer of Regional Management Corp. “Our omni-channel strategy, including our implementation of remote loan closings, enabled us to grow our loan portfolio by $37 million in the third quarter despite macroeconomic headwinds. We accomplished this growth while continuing to maintain our underwriting standards and our portfolio’s stable credit profile.”
“Thanks in part to solid execution on our most recent securitization transaction in September, we also continue to maintain ample liquidity, including $208 million of immediately available liquidity as of October 23, 2020, which positions us well to withstand any additional economic challenges,” added Mr. Beck. “To that end, based on our consistently strong performance, liquidity profile, excess capital, and confidence in our future prospects, we are very pleased that our Board of Directors has authorized a new $30 million share repurchase program and initiated a quarterly dividend of $0.20 per common share beginning in the fourth quarter of 2020. We are confident in our business model’s ability to generate excess capital to return to our shareholders on a regular basis. The recurring dividend and repurchase programs allow us to return significant value to our shareholders, while retaining ample capital to continue our investment in omni-channel and digital initiatives that will expand our market share and generate sustainable long-term profitable growth.”
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